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2024 (2) TMI 114 - HC - Income TaxTaxability of Waiver of loan - loan advanced for acquisition of capital equipments - Revenue's first contention that the loan waived was availed towards working capital - whether waiver of loan attributable for the working capital was taxable under Section 28 (iv)? - HELD THAT:- Revenue's contention in contra-distinction with the ratio in Mahindra & Mahindra Ltd. [2018 (5) TMI 358 - SUPREME COURT] the Hon'ble Single Judge has held that the nature of loan would be of no relevance. He has further held that the benefit of waiver of loan in the case on hand is not other than in the shape of money. Therefore, the benefit would fall outside the ambit of Section 24 (iv) of Income Tax Act. It is not in dispute that the assessee had availed loan from several banks and the Consortium of Banks had waived the loan. Thus, whether the loan was availed for the purpose of working capital or acquisition of capital assets should not really matter and we are at one with the Hon'ble Single Judge with regard to findings recorded. Second contention of the Revenue is that right recourse for the assessee was to file an ITA and not a writ petition - Appellant is right in his submission. Ordinarily, a writ Court should not entertain a matter where there exists an alternative efficacious remedy except in rare cases such as violation of Principles of Natural Justice, imposition of disproportionate penalty, etc. In the instant case, the Hon'ble Single Judge has entertained the writ petition by recording that the issue involved is covered by Mahindra & Mahindra Ltd. (supra). Having heard the learned Advocates on both sides, we are at one with the view taken by the Hon'ble Single Judge. Though the contention with regard to appellate remedy urged on behalf of the Revenue would merit some consideration, in the facts and circumstances of this case, we do not think it appropriate to interfere with the order passed by the Hon'ble Single Judge. In any event, the matter has been remitted to ITAT and Miscellaneous Petition is pending consideration. In the circumstance, we find no merit in this appeal and accordingly the appeal stands dismissed.
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