TMI Blog2016 (6) TMI 1161X X X X Extracts X X X X X X X X Extracts X X X X ..... ing at any stage of the proceedings as to the profile of the loan/s waived, and the manner of its’ utilization, i.e., whether for capital asset/s or for working capital of the business, i.e., toward financing the same. The matter is accordingly restored back to the file of the A.O. to verify and examine the assessee’s claim/s as being either an advance for and utilized for the acquisition of capital assets and/or toward working capital or regular business purposes, so that it would stand to be assessed only in case of, and to the extent of the latter. No doubt, the Hon’ble High Court in CIT vs. Ramaniyam Homes (P.) Ltd. [2016 (4) TMI 954 - MADRAS HIGH COURT] has held that a loan/advance, even if for a capital asset, would on its’ waiver ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (OTS) arrived at with them), to tax u/s. 28(iv) of the Act, which reads as under; the assessee having already disclosed the interest waiver of ₹ 345.17 lacs allowed along with as income u/s.41(1), the same having been allowed as deduction for A.Y. 2008-09: Profits and gains of business or profession 28. The following income shall be chargeable to income- tax under the head Profits and gains of business or profession ,- (i) (iv) the value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession Without prejudice, he also invoked section 41(1) of the Act. The credit of the principal waived to the capital reserve account was found by him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of T. V. Sundaram Iyengar Sons Ltd. (supra) and Solid Container Ltd. (supra) respectively are not applicable to the facts of the case under consideration. As far as loan from ADCB is concerned, we are of the opinion that same is taxable as it was advanced for stock in trade. In these circumstances, the waiver granted by the ADCB amounting to ₹ 1.33 crore has to be taxed as taxable income for the year under consideration whereas waived amount of ₹ 3.06 crores by ICICI Bank has to be excluded from the taxable income. Since the facts of the present case are squarely covered by the decision of the Hon ble Tribunal in assessee s own case for A.Y. 2007-08, therefore, following the same decision the addition made by the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
