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2017 (5) TMI 251 - AT - Income TaxAddition on account of major repair expense - Held that:- As decided in assessee's own case for previous AY 2006-07 & 2007-08 held there was no enhancement in the capacity of the plant and machinery as well as no increase in the efficiency. There was no purchase of any new equipment under the category of plant and machinery. Thus no enduring benefit was created by the assessee out of the aforesaid expense,thus the entire expenditure was revenue in nature and thereby allowable - Decided in favour of assessee Debts written back - Gain received on account of settlement of the loan - whether the loan amount written off is income as per the provisions to section 28(iv)? - Held that:- The provisions of section 28 of the Act deals with profits and gains of business or profession and clause (iv) thereof says that the value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession shall be chargeable as income under the head "Profits and gains of business or profession". In the instant case the fact that the loan was utilized for the capital transactions has not been disputed by the AO. Thus it is clear that the instant loan was not utilized for the trading liability of the assessee and therefore the waiver off the same cannot amount to income which is chargeable to tax. See CIT v. Tosha International Ltd. [2008 (9) TMI 31 - HIGH COURT DELHI ] - Decided against revenue
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