DCIT CIRCLE GANDHINAGAR, GANDHINAGAR vs. RAJENA AGRO PRODUCTS PRIVATE LIMITED, PATAN

ITA 2096/AHD/2026Status: DisposedITAT Ahmedabad19 August 2026AY 2021-2212 pages
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What were the facts?

The assessee company obtained loans from a bank and later settled the dues under a One Time Settlement Scheme. The bank waived a significant amount of interest and principal. The Assessing Officer treated the waived amounts as income, while the CIT(A) deleted the addition for the principal waiver and remanded the interest waiver for verification.

What did the Tribunal hold?

The Tribunal held that the waiver of principal amount is not taxable under Section 28(iv) as it was a monetary benefit and not a perquisite in kind, following Supreme Court and High Court precedents. The Tribunal also affirmed the CIT(A)'s deletion of interest waiver that was already accounted for in the P&L, but remanded the specific interest waiver of Rs. 56,23,724 for verification.

What were the issues?

Whether waiver of principal loan amount is taxable as business income under Section 28(iv) and whether waiver of interest is taxable under Section 41(1) if not offered to tax.

Which sections of the Income-tax Act were involved?

Section 41(1),Section 28(iv)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH

Before: Shri Narendra Prasad Sinha & Shri Tapas Ram Misra

For Appellant: Shri S K Sadhwani, CA &, Shri Aneesh Sadhwani, Adv
For Respondent: Shri Kiran Unavekar, CIT-DR, Shri S K Sadhwani, CA &, Shri Aneesh Sadhwani, Adv

Heard together (2 matters)

ITA No. 2096/Ahd/2026
C.O. No. 55/Ahd/2026

Read from the judgment's own cause title. This page is filed under one of them.

PER TAPAS RAM MISRA, JUDICIAL MEMBER:

The captioned appeal by the Revenue and the corresponding Cross Objection by the Assessee have been preferred against the order passed by the Ld. Commissioner of Income Tax (Appeals),

I.T.A No. 2096/Ahd/2026 & C.O. No. 55-Ahd-2026

National Faceless Appeal Centre, Delhi, (hereinafter referred to as “CIT(A)”), dated 16.03.2026 passed under Section 250 of t

The order continues below.

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