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2010 (12) TMI 876 - AT - Income TaxAddition - Waiver of term loan - assessee had taken loans from State Bank of India for its operation and due to circumstances which were beyond its control, it could not repay the loan and the bank came forward with one time settlement and settled the loan - assessee has received deposits in the course of trading transactions and the assessee had treated them as capital receipt and not offered them to tax in the earlier years - Held that:- the reduction of the liability on account of term loan and other loans payable to the bank under one time settlement scheme, does not result into income to the assessee either u/s.28(i) or u/s.28(iv) or u/s.41(1) of the Income-tax Act, 1961 - Decided in favor of assessee. Continuance of business - When the assessee filed returns of income before the department, wherein it is clear that the assessee had revived its business, the Revenue cannot overlook the evidences and hold that the business can never be revive - it was not a complete breakdown of business but it was a case of mere lull in business due to some restrictions of prawn farming by the Hon'ble Supreme Court and also the facts demonstrate that there is revival of business - Therefore, the decision of Hindustan Chemical Works (1979 -TMI - 36807 - BOMBAY High Court) squarely apply to the present case. - Decided in favour of the assessee
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