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2017 (2) TMI 920 - AT - Income TaxDiscount received on term loan - whether the said sum is a capital receipt and not taxable in hands of the assessee? - Held that:- We find no merit in the said stand of Assessing Officer where the assessee is a limited company and it has to report all its receipts as part of the Profit & Loss Account. The receipt is whether taxable or not in the hands of assessee is to be decided thereafter. The auditor had also reduced the said amount from the Written Down Value of the assets and computed depreciation accordingly. The assessee on the other hand, had disallowed the said amount from the profits of year while computing income in its hands. It is not disputed that the assessee had received the discount on loan amount, which was utilized for the purpose of investment in assets. Only because it was credited as other income in the Profit & Loss Account, would not justify its taxability in the hands of assessee. The nature of receipt has to be seen and where it is relatable to acquisition of capital asset i.e. the loan raised by the assessee was admittedly, used for purchase of capital asset, then the discount, if any, received by the assessee is capital receipt in the hands of assessee and hence, the same is not assessable to tax. Thus we hold that discount received by the assessee is capital receipt and hence, is not to be included in the total income of the assessee. - Decided in favour of assessee Deduction claimed on account of employee’s contribution to PF and ESI - Held that:- The said issue is squarely covered by the ratio laid down in CIT Vs. Ghatge Patil Transports Ltd.(2014 (10) TMI 402 - BOMBAY HIGH COURT) and in CIT Vs. Hindstan Organics Chemicals Ltd. (2014 (7) TMI 477 - BOMBAY HIGH COURT). Following the same parity of reasoning, we direct the Assessing Officer to allow the claim of assessee.
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