2011 (12) TMI 554

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..... ORAL ORDER Per : HONOURABLE MR.JUSTICE AKIL KURESHI Revenue is in appeal against the judgment of the Tribunal dated 5.6.09 raising following question for our consideration: "Whether the Appellate Tribunal is right in law and on facts in reversing the order passed by CIT(A) and thereby deleting the addition of Rs. 14,12,15,000/- made on account of waiver of principal amount of loan ?" It is st .....

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..... course of business had obtained certain loans from different creditors. Due to the weak financial condition of the company, the creditors had approached the High Court by filing Company Petitions. During the course of such proceedings, a compromise was reached between the assessee and the creditors wherein the creditors remitted the unsecured loan amounting to Rs. 1.77 lacs. Interest accrued ther .....

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..... was unable to establish that the amount of Rs. 14.12 crores represented any part of interest. From the Assessing Officers order we notice that the amount of Rs. 24.10 crores represented the principal amount an Rs. 14.12 crores and the unpaid interest of 9.98 crores both of which were waived by the Bank. Since we are not concerned with the waiver of unpaid interest, we find that the issue is squar .....

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