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2018 (12) TMI 570 - AT - Income TaxMAT computation - Addition towards not deducting the waived interest amount of under ‘one time settlement’ for computing book profit u/s 115JB - sick industrial company - Held that:- In the case of Vista pharmaceuticals (2012 (6) TMI 569 - ITAT HYDERABAD), the coordinate bench has held that when this impugned interest is not actually allowed as deduction in earlier years while computing the book profit in those years, the same can't be brought to tax in this asst. year while computing book profit U/s. 115JB of the Act. In the case of assessee, AR has brought to our notice that the assessee has not charged the interest waived by the bank as interest in the earlier years and interest was never allowed as deduction while computing book profit in the earlier years and hence the said decisions are squarely applies to the case of the assessee. Further, the assessee’s case falls under clause (vii) of explanation (1) to section 115JB. Therefore, we do not find any infirmity in deleting the addition made on this count. This ground of appeal of the revenue is dismissed. Addition towards ‘waiver of working capital term loan' - Held that:- We notice that the Hon’ble Delhi High Court Decision in the case of Tosha International Ltd. (2008 (9) TMI 31 - HIGH COURT DELHI) is similar to the facts of the present case held that remission of the principal amount of loan didn’t amount to income - remission would become income u/s 41(1) only if assessee has claimed deduction in respect of expenditure or trading liability - CIT(A) correct in deleting the addition made by the AO towards waiver of capital treating as revenue in nature - decided against revenue
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