Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (7) TMI 991 - AT - Income TaxRemission of unsecured loans - Whether could not be subjected to tax by invoking section 28(iv) of the Act - CIT(A) deleting the addition made by the AO as income u/s.2(24) r.w.s. 28(iv) - Held that:- Similar issue in case of CIT(A) V/s. Jindal Equipments Leasing & Consultancy services Ltd. (2009 (12) TMI 364 - DELHI HIGH COURT) wherein it has been held that waiver / write off principal amount of loan is not taxable as benefit or perquisites u/s.28(iv) because the benefits or perquisites should be of the nature other than cash. This decision has followed the cases of Mahendra & Mehendra [2003 (1) TMI 71 - BOMBAY High Court] and Alembic P. Ltd. [1980 (8) TMI 42 - GUJARAT High Court] CIT(A) while granting relief to the Assessee has given a finding that the Assessee was not carrying on the business of obtaining loans and therefore the remission of loan cannot be considered to be a benefit arising out from the business. - Decided in favour of assessee.
|