TMI Blog2017 (8) TMI 1070X X X X Extracts X X X X X X X X Extracts X X X X ..... eipt not chargeable to tax. From a perusal of these factual findings, we find the same to be in consonance with the principle of law laid down by the Division Bench of this Court in the case of Mahendra & Mahendra Ltd. V/s. CIT, (2003 (1) TMI 71 - BOMBAY High Court] - Decided against revenue - Income Tax Appeal No. 477 of 2015 - - - Dated:- 18-8-2017 - S. C. Dharmadhikari And Smt. Vibha Kankanwadi, JJ. Mr. Sham Walve for the Appellant Mr. Jas Sanghvi a/w Ms. Jasmin Amalsadvala i/b PDS Legal for the Respondent ORDER P.C.: Having heard both sides and after perusal of the order of the Tribunal, we do not think that the Appeal raises any substantial question of law. 2 The Tribunal passed an order for assessment y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been acquired from Spindle Fabrik Suessen, Germany and the respective invoices thereof. It is noticeable from the financial statements of the assessee as on 31.03.1995 that a liability of ₹ 32.75 crores was outstanding as a part of current liabilities of ₹ 42.60 crores against the name of Spindle Fabrik Suessen, Germany, against the machineries acquired. The aforesaid position is not disputed by the Revenue inasmuch as the same is also emerging from the relevant portion of the Balance Sheet incorporated by CIT(A) in his order at page 7. The loan from DEG, Germany was received on 30.09.1995 and was utilized for payment of the outstanding liability towards acquisition of fixed assets of ₹ 32.75 crores, apart from meeting ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Fabrik Suessen, Germany. Therefore, it has to be understood that the loan availed from DEG, Germany was utilized for the purposes of acquisition of capital assets, to the above extent. The subsequent waiver of such an amount, in our view, cannot be said to be waiver of a loan raised for trading activity. In this view of the matter, we therefore, hold that the waiver of the principal amount of term loan granted by DEG, Germany of ₹ 29,63,27,000/was with respect to a loan which was granted as well as utilized for purchase of capital assets, namely, plant machinery. 14. Considered in the aforesaid factual backdrop, the waiver of ₹ 29,63,27,000/represents waiver of the principal amount of loan utilized for acquisition of ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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