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2017 (6) TMI 1236 - HC - Income TaxAddition u/s 41 - Taxability of income as a perquisite - waiver of loan by creditor - deemed income u/s 41(1) - sum due by the Respondent later on waived off by the lender - applicability of Section 28 (iv) of the IT Act - whether waiver of loan by the creditor is taxable as a perquisite under Section 28 (iv) or taxable as a remission of liability under Section 41(1)? - Held that:- Issue is now squarely covered by the decision of Delhi High Court in Commissioner of Income Tax vs. Jindal Equipments Leasing and Consultancy Services Ltd. [2009 (12) TMI 364 - DELHI HIGH COURT] as held 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. There is difference between ‘trading liability’ and ‘other liability’. Section 41 (1) of the IT Act particularly deals with the remission of trading liability. Whereas in the instant case, waiver of loan amounts to cessation of liability other than trading liability. Hence, we find no force in the argument of the Revenue that the case of the Respondent would fall under Section 41 (1) of the IT Act. - Thus answer the question in favour of the assessee and against the Revenue
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