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2014 (7) TMI 1244 - AT - Income TaxWaiver of Principal amount of long term loans - revenue receipt OR capital receipt - nature of receipt - Held that:- The waiver of amount represents waiver of the principal amount of loan utilized for acquisition of capital assets and not for the purposes of trading activity and accordingly the issue is covered in favour of the assessee by the judgement of the Hon’ble Bombay High Court in the case of Mahindra and Mahindra Ltd. (2003 (1) TMI 71 - BOMBAY High Court ). Following it has to be held that the waiver of the 10 principal amount of loan granted by the DEG, Germany to the extent of ₹ 29,63,27,000/- in terms of OTS Scheme is in the nature of capital receipt not chargeable to tax. - Decided in favour of assessee. Suo-motu disallowance by the assessee in the computation of income - assessee had voluntarily offered an amount under the heading ‘other disallowances’ in the computation of income - Held that:- No doubt a claim of deduction or disallowance is to be worked out on the basis of the prevalent legal position and is not dependent on what stand the parties may profess. Therefore, any error or omission made in the return of income or any wrong claim in the return of income can be subject to rectification as per law. So however, in the present case, the CIT(A) has clearly established that assessee has not brought out the details of any discrepancy in anticipation of which the impugned disallowance was made by the assessee. There is no material before us, apart from generalized assertions, that the aforesaid disallowance was under any particular misconception of law or facts. The onus on this aspect is entirely on the assessee which has not been discharged, therefore, we find no reasons to interfere with the order of the authorities below. Thus, on this Ground assessee fails.
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