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2017 (8) TMI 1070 - HC - Income TaxWaiver of a principal amount of loan - whether this constitutes a trading liability - Section 28(iv) and Section 41(1) clause (a) applicability - Held that:- Waiver of the principal amount of loan utilized for acquisition of capital assets and not for the purposes of trading activity and accordingly the issue is covered in favour of the assessee by the judgment in the case of Mahindra and Mahindra Ltd. (2003 (1) TMI 71 - BOMBAY High Court) it has to be held that the waiver of the principal amount of loan granted by the DEG, Germany to the extent of ₹ 29,63,27,000/in terms of OTS Scheme is in the nature of capital receipt not chargeable to tax. From a perusal of these factual findings, we find the same to be in consonance with the principle of law laid down by the Division Bench of this Court in the case of Mahendra & Mahendra Ltd. V/s. CIT, (2003 (1) TMI 71 - BOMBAY High Court] - Decided against revenue
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