The Tribunal held that surplus arising out of issue and subsequent repurchase and extinguishment of debentures at a lower price would not be taxable under section 41(1) of the Act as it was not on account of trading liability and also that it could not be considered as income under section 2(24) of the Act. Reliance Industries Ltd v ACIT – (2015) 45 CCH 0055 Mum Trib.