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2023 (6) TMI 1209 - ITAT HYDERABADNature of receipt - one time settlement arising out of waiver of dues of term loan by the lender - Revenue or capital receipt - HELD THAT:- We find the Hon’ble Supreme Court in the case of T.V. Sundaram Iyengar & Sons Ltd[1996 (9) TMI 1 - SUPREME COURT] while holding that if an amount is received in the course of trading transaction, even though it is not taxable in the year of receipt being of revenue character, the amount changes its character when the amount becomes the assessee’s own money because of limitation or by any other statutory or contractual right. When such a thing happens, commonsense demands that the amount should be treated as income of the assessee. Assessee itself has credited the waiver of the amount to the Profit & Loss A/c and offered only the interest component to tax and did not offer the amount treating the same as capital in nature. The waiver of the principal amount which was taken for trading purpose and credited to the profit & loss account of the assessee, results in income in the hands of the assessee and therefore, the learned CIT (A) is fully justified in upholding the action of the AO in bringing the same amount to tax in the hands of the assessee. The grounds raised by the assessee are accordingly dismissed.
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