Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (8) TMI 850 - HC - Income TaxCessation of liability - whether the conversion of liabilities of the Assessee into equity share capital at a premium resulted in any benefit to the Assessee within the meaning of Section 28 (iv) or Section 41(1) (a) of the Act? - Held that:- The finding returned concurrently by both the CIT (A) and the ITAT that the conversion of loans into capital did not result in any benefit to the Assessee and that the nature of the liability essentially remained the same. The Court concurs with the said view. Indeed there was no cessation of liability on account of the allotment of shares in favour of the creditors. It has rightly been held by the ITAT that the decision in CIT v. T.V. Sundram Iyengar & Sons [1996 (9) TMI 1 - SUPREME Court] has no applicability to the facts of the present case. - Decided against revenue.
|