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2014 (5) TMI 1168 - ITAT PUNEAddition on account of write off of the principal portion of cash credit loan waived by Banks - Held that:- As decided in assessee's own case A.Y. 2008- 09 [2014 (1) TMI 1840 - ITAT PUNE] the answer would depend upon the purpose for which the said loan was taken. If the loan was taken for acquiring the capital asset, waiver thereof would not amount to any income exigible to tax. On the other hand, if this loan was for trading purpose and was treated as such from the very beginning in the books of account, as per T.V. Sundaram Iyengar and Sons Ltd. [1996 (9) TMI 1 - SUPREME Court] the waiver thereof may result in the income more so when it was transferred to the profit and loss account - CIT(A) has rightly confirmed the addition made by the AO to the extent of waiver to the cash credit loan - Decided against assessee. Addition on account of section 35(2AB) - approval is not in prescribed Form No. 3CM - Held that:- As decided in assessee's own case A.Y. 2008- 09 [2014 (1) TMI 1840 - ITAT PUNE] the finding of the Ld. CIT(A) are acceptable that if the approval is not in prescribed Form No. 3CM is not a serious discrepancy which should result in disallowance of the deduction to the assessee u/s. 35(2AB) of the Act. In this case, it is not disputed that the assessee has applied to the competent authority for getting the approval/recognition and only after the verification of all the details the Prescribed Authority have issued the approval letter. CIT(A) has rightly allowed the claim of the assessee - Decided in favour of assessee Addition on account of principal amount of waiver of loan - Held that:- As decided in assessee's own case A.Y. 2008- 09 the nature of the loan which has been waived in one time settlement is not disputed. In our opinion, the assessee’s case is squarely covered by the decision in the case of M/s. Xylon Holdings Pvt. Ltd. (2012 (9) TMI 449 - BOMBAY HIGH COURT) as the amount waived pertains to the term loan which was taken by the assessee for acquition of the assets. CIT(A) rightly deleted the addition made by the Assessing Officer on account of principal amount of waiver of loan.- Decided in favour of assessee
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