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2016 (3) TMI 582 - AT - Income TaxWaiver of loan amount - Scope of section 28(iv) - Addition under the regular provisions of the Act and under section 115JB on account of waiver of loans by the National Housing Bank - waiver of principal portion of the refinance loan by the National Housing Bank - Held that:- Under a one-time settlement entered into between the assessee and the bank, the bank accepted the ad-hoc payment of ₹.5 crores made by the assessee and waived a sum of ₹.5,07,78,410/- being the remaining principal and a sum of ₹2,02,60,247, the outstanding interest. However, in the instant case, the assessee has entered into a onetime settlement of refinance loan with National Housing Bank. The assessee has shown a loss after depreciation and tax at ₹.4,18,41,839/- on a total receipt of ₹.2,65,18,784/-. Against this loss of ₹.4,18,41,839/-, the assessee has adjusted a sum of ₹.5,77,40,964/- which represents waiver of refinance loan of National Housing Bank, resulting in a profit of ₹.1,58,99,125/-. However, the amount of ₹.5,77,40,964/- representing waiver of refinance loan of National Housing Bank has not been considered both for normal computation and for the purpose of computation of book profit under section 115JB of the Act. Since the waiver of loan is nothing but income of the assessee within the meaning section 28(iv) of the Act, and the same was availed during the course of regular business, the waiver of the principal portion of the loan clearly forms benefits assessable to tax under section 28(iv) of the Act. Therefore, the reliance placed by the assessee in the case of Iskraemeco Regent Ltd. v. CIT (2010 (11) TMI 43 - Madras High Court) has no application to the facts of the present case. CIT(A) confirmed the addition made by the Assessing Officer rightly - Decided against assessee
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