TMI Blog2016 (4) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... by such an undertaking given by the two Indian Nationals. At the most it was a promise on the part of the Indian Nationals to protect the British National against any claim from the Customs Department. It was a promise to hedge the risk that may fall upon the British National. Once the loan is written off and the person writing off the loan, does not stand to benefit, in any concrete manner, ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tances of the case, the remission of the loan borrowed for the purpose of purchasing a capital asset does not amount to a casual and non-recurring receipt in the hands of the assesse 2. Heard Mr.A.P.Srinivas, learned Standing Counsel appearing for the appellant/Department and Mr.R.Kumar, learned counsel appearing for the respondent / assessee. 3. The brief facts out of which the above app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Appellate Tribunal. Hence, the Revenue is on appeal. 5. Mr.A.P.Srinivas, learned Standing Counsel relies upon the decision in CIT Vs. T.V.S. SUNDARAM IYENGAR AND SONS LIMITED reported in [1996] 88 TAXMAN 429 [SC]. However, Mr.R.Kumar, learned counsel appearing for the respondent / assessee relies upon the decision in ISKRAEMECO REGENT LIMITED Vs. COMMISSIONER OF INCOME TAX reported in [2011] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount to its profit and loss account. There is no explanation form the assessee why the surplus money was taken to its profit and loss account even if it was somebody else's money. In fact, as Atkinson, J, pointed out that what the assessee did was the common sense way of dealing with the amounts. 7. However, the Division Bench of this Court was concerned directly with the question tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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