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2017 (6) TMI 1082 - ITAT DELHIAddition on account of waiver of loan - Held that:- It is not in dispute that assessee had taken loan from the bank at the interest of 9.5% per annum. Since assessee was incurring losses and some payments were not made to the bank on time therefore the banks started debiting higher rate of interest in their books of accounts. However, the assessee continued to provide interest in its books of accounts as were provided on the sanctioned loan. The assessee filed complete details to show that when the matter was settled with the bank and lumpsum payment of ₹ 2.50 crore was paid to the bank, there was a waiver of interest. The assessee therefore rightly contended that merely because bank was making a claim of higher amount of interest, it would not become waiver to the assessee. It is also admitted fact that assessee has never claimed a waiver of interest as expenditure in its books of accounts and return of income. Therefore, there is no question of considering it to cessation of liability or any benefit arises from the business. Ld. CIT(A), therefore, on proper appreciation of facts and material on record rightly deleted the impugned addition. - Decided against revenue.
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