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2022 (7) TMI 999 - AT - Income TaxAddition u/s 28 - Addition on account of benefit arising from business u/s 28(iv) by writing back unsecured loan - assessee has borrowed interest free money from Singhi Associates for his personal use and before the commencement of previous year, assessee has repaid it partly and outstanding amount were written back by the assessee - AO taxed this write back u/s 28 (iv) - HELD THAT:- In the present case the addition has been made by the LD AO u/s 28 (iv) of The Act relying on the decision of Honourable Bombay High court in case of Solid Containers Limited [2008 (8) TMI 156 - BOMBAY HIGH COURT] - We find that CIT (A) is justified in rejecting the argument of the ld AO for the reason that in that case was not at all on the issue of section 28 (iv) and thus Honourable High court did not have any occasion to consider that provision. In case of Mahindra & Mahindra [2018 (5) TMI 358 - SUPREME COURT] honourable SC specifically considered that provision and held that in waiver of loan , as it is not in kind but in cash, section 28 (iv) does not apply. Thus we do not find any reason to disturb the appellate order of The LD CIT (A) on this issue. We confirm his findings that the write back of loan is not chargeable as business income u/s 28 (iv) of The Act. Accordingly, Ground No 1 of the appeal is dismissed. Addition under Section 56(2) (x) - difference in sale consideration and stamp duty value of 7 properties sold - application of tolerance band limit - HELD THAT:- Coordinate bench in case of Maria Fernandes Cheryl [2021 (1) TMI 620 - ITAT MUMBAI] has already held that the amendment made by Introducing proviso [ Introduction of tolerance band of 5 % and later on 10 % ] applies with effect from 1/4/2003 when the provision of section 50 C were introduced. Further introduction of tolerance band is for removing the hardship in the section. once a statutory amendment is being made to remove an undue hardship to the assessee or to remove an apparent incongruity, such an amendment has to be treated as effective from the date on which the law, containing such an undue hardship or incongruity, was introduced as held by Hon Supreme Court in Alom Enterprises [2009 (11) TMI 27 - SUPREME COURT] Respectfully following the decision of the coordinate bench in Maria Fernandes Cheryl. [2021 (1) TMI 620 - ITAT MUMBAI] we do not find any infirmity in the orders of the ld CIT (A) in applying the tolerance band limit of 10 % in the impugned assessment year also and thereby deleting the addition - Accordingly, Ground no 2 is dismissed.
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