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2009 (12) TMI 364 - DELHI HIGH COURT
Business Income- The assessee was an investment company. During the previous year, the assessee had reflected a loan payable to J. J wrote off a part in its books of accounts. In the light of this, the Assessing Officer treated the sum written off by J as income of the assessee and added it under section 41 of the Act. Commissioner (Appeals) confirmed it. Tribunal deleted the addition. Held that- the Tribunal has held that the waiver/written off part of principal amount of loan by JSPL does not constitute income at the hands of the assessee. On the facts of this case and particularly having regard to the nature of business only, it will constitute capital receipt. Thus answer the question in favour of the assessee and against the Revenue. As a consequence, we dismiss this appeal.