TMI Blog2021 (9) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... Mahindra Ltd. [ 2018 (5) TMI 358 - SUPREME COURT] as held that the waiver of the amount of term loan availed by the assessee under OTS will not fall under the purview of income either u/s. 28(iv) or u/s. 41(1). Taking support from the judgment of Hon'ble Apex Court, we are of the view that the sum amount in dispute representing waiver of loan liability was on the capital accounts, and not in the nature of income, more so when no deduction and allowance was made in respect of such loan in any assessment year. CIT(A) has rightly appreciated the facts of the case in terms of the judgment of Hon'ble Supreme Court, and allowed the claim of the assessee, which we do not find any infirmityground of appeal of the Revenue is rejected. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8,187 in the form of wavier towards principal portion of loan as per the order of the BIFR. However, no concession or relief was allowed by the BIFR on the receipt of ₹ 2,47,88,187/- being waiver of principal portion of the loan. It was further observed by the AO that the assessee shown the amount of ₹ 2,47,88,187/- as income from other sources and credited the same to the profit loss account. However, in the return of income and computation of income, the assessee has claimed the waiver portion of the principal amount as deductible income, which claim, according to the AO, was not justifiable. The ld. AO, therefore, show-caused the assessee as to why the same should not be disallowed and added to the income of the assessee. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and perusal of the impugned orders, we find that the issue in dispute is about taxability of amount of loan waived by the financial institution, on account of one time settlement. The assessee had outstanding loan liability of ₹ 6,88,90,057/- with the IDBI Bank, which was settled under OTS at ₹ 441 lakhs, and the balance amount of ₹ 2,47,88,187/- representing principal portion of the loan waived by the Bank has been shown as income. The assessee credited the sum as income in the profit loss account and shown it in the return of income, at the same time, claimed the same deductible income. The ld. AO did not accept treatment of waiver amount by the assessee, and held that since the assessee has shown the relief by way o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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