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2019 (7) TMI 1649 - HC - Income TaxCessation of liability - Guarantee commission payable to the Government - treatment given to the amounts i.e. the payments payable to the State for standing guarantee and shown as fee - revenue or capital receipt - AO treating it as income under Section 41(1)(a) - HELD THAT:- Undoubtedly, the assessee claimed them to be revenue receipts. At the same time, the record also supports the findings of the CIT(A) and ITAT, in that the loan utilized by the assessee was for the capital purposes; the loan was in-fact given by the NDDB. The assessee continues to remain liable to repay those amounts. In these circumstances, the State instead of fully writing off the amounts, (repayable by the assessee) imposed an important condition that they would be utilized only for capital/rehabilitation purposes. This was therefore a significant factor i.e. the writing off was conditional upon use of the amount in the hands of the assessee which was for the purpose of capital. The ruling of T.V. Sundaram Iyengar & Sons Ltd. [1996 (9) TMI 1 - SUPREME COURT]in the opinion of this Court, would not apply. No substantial question of law.
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