Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (5) TMI 1056 - AT - Income TaxAddition towards interest waived by the financial institution - AO disallowed the claim of the assessee on the ground that there was no actual payment of interest - Held that:- CIT(Appeals) found that the above sum which was debited in the Profit & Loss account in the assessment years 1994-95 to 2002-03, was disallowed and the same was taken as income of the assessee. Therefore, there is no question of any disallowance once again during the year under consideration. It is not in dispute that the claim made by the assessee with regard to waiver of interest was taken as income in the earlier assessment years by disallowing the claim of the assessee under Section 40A(3) of the Act. Therefore, as rightly pointed out by the CIT(Appeals), there is no need for disallowing the very same amount once again. - Decided in favour of assessee Addition being the principal amount waived by the financial institution - Held that:- The purpose for which the loan borrowed is capital purpose, therefore, when the loan was waived by the financial institution, it will remain as capital in nature. It cannot be treated as benefit arising in the course of business under Section 28(iv) of the Act. In the case before us, it is not known whether the loan was borrowed for the purpose of investing in the capital asset or for the purpose of meeting the revenue expenditure. In the absence of any details on record, this Tribunal is of the considered opinion that the matter needs to be re-examined by the Assessing Officer. The Assessing Officer also shall examine the purpose for which the loan was borrowed and its utilization thereof. Thereafter, the Assessing Officer has to reconsider the matter. Accordingly, the orders of the lower authorities are set aside on this issue and the same is remitted back to the Assessing Officer. - Decided in favour of assessee for statistical purposes.
|