Rollatainers Ltd. v. CIT

339 ITR 54High Court2011#4575 most cited

What is Rollatainers Ltd. v. CIT authority for?

Waiver of a loan taken for business purposes constitutes a remission or cessation of liability under Section 41(1) of the Income Tax Act, making it taxable as business income under Section 28.

26

judgments rely on this decision, according to BharatTax’s citation analysis of 366,315 Indian tax judgments — from 2012 to 2025.

Also referred to as

Rollatainers Ltd. v. CIT · section 41(1) · section 28 · waiver of loan · business income · cash credit · remission of liability · taxable income · company · previous year

Also reported as

15 Taxmann.com 111

Sections most often in play

Section 1961Section 2(24) of the Income Tax ActSection 28 of the Income Tax ActSection 41(1) of the Income Tax Act
Read the full judgment

Issues it is cited on

waiver of loansection 28(iv)section 41(1)section 41section 28liable to taxprevious yearpersonbusinesscompanyindiainterest

Judgments citing Rollatainers Ltd. v. CIT

M/S Chatta Sugar Co. Ltd, Mathura vs. A.C.I..T Circle-3, Mathura

In the result, the appeal of the assessee is allowed

ITA 129/AGR/2015[2009-10]Status: DisposedITAT Agra01 Jul 2025AY 2009-10

Bench: Shri Sunil Kumar Singh & Shri Brajesh Kumar Singh[Assessment Year: 2009-10]

Section 142(1)Section 143(3)Section 28Section 41(1)

…alue of the company, but as far as the assessee is concerned, the subject receipt is clearly a revenue receipt. 2.8. In conclusion, the AO further relied upon case laws and held in concluding paras as under:- In the case of Rollationers Ltd. vs. CIT (2011) 339 ITR 54 (Delhi), the assessee company was declared sick under the provisions of SICA. 1985 and its debts were restructured in pursuance to scheme and part of its debts were waived by financial institutions. In respect of waiver of cash credit limit, it was claimed by the assessee that the same did not constitute taxable income. Negating such contention, i…

Assistant Commissioner of Income-Tax, Circle-2(1)(1), Ahmedabad vs. Interkiln Industries Pvt Ltd, Gujarat

In the result, the appeal of the Revenue is allowed for statistical purpose

ITA 947/AHD/2023[2010-2011]Status: DisposedITAT Ahmedabad15 Jul 2024AY 2010-2011

Bench: Smt.Annapurna Gupta & Shri T.R. Senthil Kumarassessment Year : 2010-11 Acit, Cir.2(1)(1) Interkiln Industries P.Ltd. Ahmedabad. Vs Sanghvi Chambers B/H. Canara Bank Navrangpura Ahmedabad. Pan : Aaaci 4563 R (Applicant) (Responent) : Shri Jaimin A. Gandhi, Ar Assessee By Revenue By : Shri Prateek Sharma, Sr.Dr सुनवाई क" तारीख/Date Of Hearing : 25/04/2024 घोषणा क" तारीख /Date Of Pronouncement: 15/07/2024 आदेश/O R D E R आदेश आदेश आदेश Per Annapurna Guptathis Appeal Has Been Filed By The Department Against The Order Of The Ld. Commissioner Of Income-Tax (Appeals), National Faceless Appeal Centre, New Delhi Dated 5.10.2023 Under Section 250 Of The Income Tax Act, 1961 (“The Act” For Short) For The Assessment Year 2010-11. 2. The Grounds Raised In The Appeal Are As Under:

For Respondent: Shri Prateek Sharma, Sr.DR
Section 24Section 250Section 28Section 41(1)

…es of decisions u/s 41(1) of the Act, i.e. – i) Solid Containers Ltd. Vs. DCIT, (2009) 308 ITR 417; ii) CIT Vs. T.V. Sundaram Iyengar & Sons Ltd. 222 ITR 344; iii) Logitronics P.Ltd. Vs. CIT, (2011) 333 ITR 386, (Delhi); iv) Rollatainers Ltd. Vs. CIT, (2011) 339 ITR 54 (Delhi) and the ratio of all these decisions is that if the loan has been taken for trading purpose waiver of such loan would tantamount to cessation of liability ,liable to tax under section 41(1) of the Act. 6. In the present case the taxability of the loan waived has not been considered in terms of the provisions of section 41(1) of the Act b…

Deputy Commissioner of Income-Tax, Circle -3, Nashik vs. Windsor Machines Ltd., Mumbai

In the result, the appeal of Revenue is partly allowed

ITA 915/PUN/2022[2011-12]Status: DisposedITAT Pune20 Oct 2023AY 2011-12

Bench: Shri S.S. Viswanethra Ravi & Shri G.D. Padmahshali

For Appellant: Shri Kishor B. PhadkeFor Respondent: Shri Ajay Kumar Kesari
Section 3Section 32(2)

…Hon’ble Supreme Court is applicable to the present facts, waiver of principal amount of loan becomes the assessee own money and chargeable to tax. Further, he referred to the decision of Hon’ble High Court of Delhi in the case of Rollatainers Ltd. reported in 339 ITR 54 (Delhi) and argued the waiver of the loans has to be treated as income in the hands of the assessee as the loans were taken in the course of business was regarded as benefit in the revenue field. 9. The ld. AR fairly conceded that the decisions of Hon’ble Jurisdictional High Court of Bombay in the case of Solid Containers Ltd. reported in 308 ITR…

ACIT, Circle- 26(1), New Delhi vs. V C Solutions Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed and the Cross Objection of the assessee is allowed

ITA 1884/DEL/2018[2014-15]Status: DisposedITAT Delhi30 Aug 2023AY 2014-15

Bench: Sh. Kul Bharatdr. B. R. R. Kumar

For Appellant: Sh. V. K. Agarwal, ARFor Respondent: Sh. P. Barnwal, CIT DR
Section 14ASection 36Section 36(1)

…entry. A double entry system of accounting will not permit of one entry. In view’ of the above, the waiver of principal amount would constitute income, falling under section 28(iv), being benefit arising for the business.” 3. Rollatainers Ltd. vs. CIT [2011] 339 ITR 54 (Delhi) “Section 41(1) read with Section 59 of the Act would become relevant and these provisions have been brought within the sweep of taxation even the remission of debt / liability as income of the order 7 CO No. 41/Del/2021 V C Solutions Pvt. Ltd. in remission or such waiver amounts to provide or gains of business or provision liable to be t…

Share Microfin Limited, Hyderabad vs. Dy. Commissioner of Income Tax, Circle-3(1), Hyerabad

In the result, appeal filed by the assessee is dismissed

ITA 430/HYD/2020[2016-17]Status: DisposedITAT Hyderabad12 Jun 2023AY 2016-17

Bench: Shri R.K. Panda & Shri K. Narasimha Charyassessment Year: 2016-17 Share Microfin Ltd Vs. Dy. C. I. T. Hyderabad Circle 3(1) Pan:Aaecs9243C Hyderabad (Appellant) (Respondent) Assessee By: Shri A.G. Sitaraman, Ca Revenue By: Shri Jeevan Lal Lavidiya, Dr Date Of Hearing: 17/04/2023 Date Of Pronouncement: 12/06/2023 Order Per R.K. Panda, A.M This Appeal Filed By The Assessee Is Directed Against The Order Dated 23003.2020 Of The Learned Cit (A)-3, Hyderabad Relating To A.Y.2016-17. 2. There Is A Delay Of 5 Days In Filing Of This Appeal By The Assessee For Which The Assessee Has Filed A Condonation Application Along With An Affidavit Explaining The Reasons For Such Delay. The Reasons Given Therein Is Due To The Prevailing Covid 2019 Pandemic. After Considering The Contents Of The Condonation Application Explaining The Reasons Filed Along With The Affidavit, The Delay In Filing Of The Appeal By The Assessee Is Condoned & The Appeal Is Admitted For Adjudication.

For Appellant: Shri A.G. Sitaraman, CAFor Respondent: Shri Jeevan Lal Lavidiya, DR
Section 143(2)Section 28Section 41(1)

…issues, as given below. 1. (Emphasis supplied) CIT VS. Ramaniyam Homes P. Ltd (2016) 384 ITR 530 (Mad.) 2. Solid Containers Ltd Vs. DCIT (2009) 178 Taxman 192 (Bom.) 3. Logitronics P. Ltd Vs. CIT (2011) 333 ITR 386 (Del) 4. Roll Containers Ltd Vs. CIT (2011) 339 ITR 54 (Del): and 5. CIT Vs. TV Sundaram lyengar & Sons Ltd (1996) 88 Taxman 429 (SC) 7.20 As seen from the above, it is clearly evident that the waiver of the loans other than loans barrowed for acquiring the capital assets is subject to the tax u/s. 28(iv) of the Act. 7.21 Be that as it may, even otherwise the waiver of the loan is subject to tax by vi…

ACIT Cent. Cir5(4), Mumbai vs. M/S. Infinite Buildcon Pvt. Ltd, Mumbai

In the result, appeal filed by the Revenue is dismissed

ITA 2241/MUM/2021[2018-19]Status: DisposedITAT Mumbai20 Sept 2022AY 2018-19
Section 28Section 41(1)Section 56(2)(x)

…THE INCOME TAX APPELLATE TRIBUNAL “C” Bench, Mumbai Shri B.R. Baskaran (AM) & Shri Rahul Chaudhary (JM) I.T.A. No. 2241/Mum/2021 (A.Y. 2018-19) Vs. M/s. Infinite Buildcon ACIT, Central Circle-5(4) Room No. 1927 Pvt. Ltd. 19th Floor 322, Commerce House Air India Building 140 N.M. Road Nariman Point Fort, Mumbai-40001. Mumbai-400 021. PAN : AACC19980N (Appellant) (Respondent) Assessee by Shri Sashi Tulsiyan Department by Shri Santhil Kumaran Date of Hearing 05.09.2022 Date of Pronouncement 20.09.2022 O R D E R Per B.R.Baskaran (AM) :- The Revenue has filed this appeal challenging the order dated 31.8.2021 p…

DCIT CC7 (2), Mumbai vs. M/S. Anik Industries Ltd, Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 2267/MUM/2021[2004-05]Status: DisposedITAT Mumbai29 Jul 2022AY 2004-05

Bench: Shri Pramod Kumar & Shri Pavan Kumar Gadaledcit, Cc-7(2) Vs. M/S Anik Industries Ltd Room No. 655, 3Rd Floor, 610, Tulsiani Aayakar Bhavan, Chamber, Nariman Point Mk Road, Mumbai – 400021. Mumbai – 400020. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacm2696K Appellant .. Respondent Appellant By : Smt Shailja Rai.Dr Respondent By : Shri.Bhupendra Shah.Ar Date Of Hearing 26.07.2022 Date Of Pronouncement 28.07.2022 आदेश / O R D E R Per Pavan Kumar Gadale, Jm: The Revenue Has Filed The Appeal Against The Order Passed By The Commissioner Of Income Tax (Appeals) U/S 271(1)(C) & 250 Of The Act. The Revenue Has Raised The Following Grounds Of Appeal:

For Appellant: Smt Shailja Rai.DRFor Respondent: Shri.Bhupendra Shah.AR
Section 143(2)Section 271(1)(c)

…IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER DCIT, CC-7(2) Vs. M/s Anik Industries Ltd Room No. 655, 3rd Floor, 610, Tulsiani Aayakar Bhavan, Chamber, Nariman Point MK Road, Mumbai – 400021. Mumbai – 400020. "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAACM2696K Appellant .. Respondent Appellant by : Smt Shailja Rai.DR Respondent by : Shri.Bhupendra Shah.AR Date of Hearing 26.07.2022 Date of Pronouncement 28.07.2022 आदेश / O R D E R PER PAVAN KUMAR GADALE, JM: The revenue has filed the appeal against the order passed by…

ACIT, Haryana vs. M/S. S.K. Foils Ltd., Bhiwani

In the result, the appeal filed by the revenue is allowed in

ITA 3504/DEL/2017[2011-12]Status: DisposedITAT Delhi13 Jan 2022AY 2011-12

Bench: Sh. N. K. Billaiya & Sh. Amit Shuklaassessment Year: 2011-12 Acit S. K. Foils Ltd. Circle Bhiwani Vs 17, Industrial Area Haryana Bhiwani Pan No. Aabcs8183Q (Appellant) (Respondent)

Section 28Section 41(1)Section 43B

…le Bombay High Court in the case of Solid Containers ltd. Vs DCIT reported in 308 ITR 417&Mahindra & Mahindra Ltd. Vs CIT reported in 261 ITR 501 and the Hon’ble Delhi High Court in the case of Logitronics Pvt. Ltd. Vs CIT 333 ITR 386&Rollatainers Ltd. Vs CIT 339 ITR 54. Notwithstanding, if at a later stage assessee contests that funds were borrowed for purchase of capital assets, the same is also taxable u/s 28(iv) and reliance can be placed on the recent judgment delivered by Hon’ble Madras High Court in the case of CIT Vs Ramaniyam Homes Pvt. Ltd. reported in 68 Taxmman 289 where it has been held that the waiv…

The Assistant Commissioner of Income Tax, Circle-1, Eluru vs. Sirius Overseas Private Limited, Tanuku

In the result, cross objections of the assessee for the A

ITA 523/VIZ/2019[2013-14]Status: DisposedITAT Visakhapatnam24 Sept 2021AY 2013-14

Bench: Shri N.K.Choudhry, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bleआयकरअपीलसं./I.T.A.No.521 /Viz/2019 To 523/Viz/2019 (निर्धारण वर्ा/Assessment Year:2009-10, 2012-13 & 2013-14) Asst.Commissioner Of Income Tax Vs. M/S Sirius Overseas Private Circle-1 Limited Eluru D.No.2-152, Rice Mill Street Velpur, Tanuku Mandal West Godavari District [Pan : Aafcs5054C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) Cross Objection No.142/Viz/2019 To 144/Viz/2019 (Arising Out Of I.T.A. No.521/Viz/2019 To 523/Viz/2019) M/S Sirius Overseas Private Limited Vs. Asst.Commissioner Of D.No.2-152, Rice Mill Street Income Tax Velpur, Tanuku Mandal Circle-1, Eluru West Godavari District [Pan : Aafcs5054C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant By : Shri D.K.Sonowal, Cit(Dr) प्रत्यधथी की ओर से / Respondent By : Shri G.V.N.Hari, Ar सुिवधई की तधरीख / Date Of Hearing : 15.09.2021 घोर्णध कीतधरीख/Dt. Of Pronouncement : 24 .09.2021

For Appellant: Shri D.K.Sonowal, CIT(DR)For Respondent: Shri G.V.N.Hari, AR

…आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM (through web-based video conferencing platform) श्री एन के चौिरी,न्याधयक सदस्य एिं श्री धड.एस .सुन्दर धसंह, लेखा सदस्य के समक्ष BEFORE SHRI N.K.CHOUDHRY, HON’BLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, HON’BLE ACCOUNTANT MEMBER आयकरअपीलसं./I.T.A.No.521 /Viz/2019 to 523/Viz/2019 (निर्धारण वर्ा/Assessment Year:2009-10, 2012-13 and 2013-14) Asst.Commissioner of Income Tax Vs. M/s Sirius Overseas Private Circle-1 Limited Eluru D.No.2-152, Rice Mill Street Velpur, Tanuku Mandal West Godavari Distri…

The Assistant Commissioner of Income Tax, Circle-1, Eluru vs. Sirius Overseas Private Limited, Tanuku

In the result, cross objections of the assessee for the A

ITA 522/VIZ/2019[2012-13]Status: DisposedITAT Visakhapatnam24 Sept 2021AY 2012-13

Bench: Shri N.K.Choudhry, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bleआयकरअपीलसं./I.T.A.No.521 /Viz/2019 To 523/Viz/2019 (निर्धारण वर्ा/Assessment Year:2009-10, 2012-13 & 2013-14) Asst.Commissioner Of Income Tax Vs. M/S Sirius Overseas Private Circle-1 Limited Eluru D.No.2-152, Rice Mill Street Velpur, Tanuku Mandal West Godavari District [Pan : Aafcs5054C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) Cross Objection No.142/Viz/2019 To 144/Viz/2019 (Arising Out Of I.T.A. No.521/Viz/2019 To 523/Viz/2019) M/S Sirius Overseas Private Limited Vs. Asst.Commissioner Of D.No.2-152, Rice Mill Street Income Tax Velpur, Tanuku Mandal Circle-1, Eluru West Godavari District [Pan : Aafcs5054C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant By : Shri D.K.Sonowal, Cit(Dr) प्रत्यधथी की ओर से / Respondent By : Shri G.V.N.Hari, Ar सुिवधई की तधरीख / Date Of Hearing : 15.09.2021 घोर्णध कीतधरीख/Dt. Of Pronouncement : 24 .09.2021

For Appellant: Shri D.K.Sonowal, CIT(DR)For Respondent: Shri G.V.N.Hari, AR

…आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM (through web-based video conferencing platform) श्री एन के चौिरी,न्याधयक सदस्य एिं श्री धड.एस .सुन्दर धसंह, लेखा सदस्य के समक्ष BEFORE SHRI N.K.CHOUDHRY, HON’BLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, HON’BLE ACCOUNTANT MEMBER आयकरअपीलसं./I.T.A.No.521 /Viz/2019 to 523/Viz/2019 (निर्धारण वर्ा/Assessment Year:2009-10, 2012-13 and 2013-14) Asst.Commissioner of Income Tax Vs. M/s Sirius Overseas Private Circle-1 Limited Eluru D.No.2-152, Rice Mill Street Velpur, Tanuku Mandal West Godavari Distri…

The Income Tax Officer, Ward-3, Srikakaulam vs. Sri Vasavi Polymers Private Limited`, Rajam

In the result, appeal of the revenue is dismissed

ITA 606/VIZ/2018[2013-14]Status: DisposedITAT Visakhapatnam03 Jun 2020AY 2013-14

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.606/Viz/2018 (ननधधारण वर्ा/Assessment Year:2013-14) Income Tax Officer Vs M/S Sri Vasavi Polymers P.Ltd. Ward-3 S.No.125 & 126, Anthakapalli Srikakulam Rajam [Pan : Aaecs1849J] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant By : Shri S.Ravi Shankar Narayan, Cit, Dr प्रत्यधथी की ओर से / Respondent By : Shri Y.A.Rao, Ar सुनवधई की तधरीख / Date Of Hearing : 12.03.2020 घोर्णध की तधरीख/Date Of Pronouncement : 05.06.2020 आदेश /O R D E R Per Shri D.S.Sunder Singh: This Appeal Is Filed By The Revenue Against The Order Of The Commissioner Of Income Tax (Appeals) [Cit(A)]-9, Hyderabad In Ita No.10300/Cit(A)-9, Hyd/2017-18 Dated 09.08.2018 For The Assessment Year (A.Y.)2013-14. With The Delay Of 1 Day. The Department Has Filed Condonation Petition & Submitted That The Delay Was Due To The 2

For Appellant: Shri S.Ravi Shankar NarayanFor Respondent: Shri Y.A.Rao, AR
Section 143(3)Section 28Section 41(1)Section 43B

…आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री िी. दुगाा राि,न्याधयक सदस्य एिं श्री धड.एस. सुन्दर धसंह, लेखा सदस्य के समक्ष BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER& SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A.No.606/Viz/2018 (ननधधारण वर्ा/Assessment Year:2013-14) Income Tax Officer Vs M/s Sri Vasavi Polymers P.Ltd. Ward-3 S.No.125 & 126, Anthakapalli Srikakulam Rajam [PAN : AAECS1849J] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : Shri S.Ravi Shankar Narayan, CIT, DR प्रत्यधथी की ओर…

Addl. CIT, New Delhi vs. M/S. the Fertilizer Corporation of India Ltd., Noida

ITA 1911/DEL/2017[2012-13]Status: DisposedITAT Delhi08 Aug 2019AY 2012-13

Bench: Shri Bhavnesh Saini & Shri Anadee Nath Misshra

For Appellant: NoneFor Respondent: Shri S.S. Rana, CIT(DR)
Section 143(3)Section 27Section 43B

…come under the purview of Section 2(XVIII) as grant in aid. The reliance of the Page 6 of 11 ITA No.-1911/Del/2017. M/s The Fertilizer Corporation of India Limited. Ld. DR on the Hon’ble Delhi High Court’s decision in case of Rollatainers Ltd. Vs. CIT (2011) 339 ITR 54(Delhi) does not apply in the present case as the Hon’ble High Court therein held that wavier of loan taken in the course of carrying on business was recorded in the books of accounts. In the present case the assessee company has not claimed waiver of interest on GOI Loan, Guarantee Fee and commitment fee as its expenditure. It is pertinent to note…

ACIT, New Delhi vs. Shri Charanjit Singh Sarna, New Delhi

The appeals of the Revenue are dismissed

ITA 3944/DEL/2015[2009-10]Status: DisposedITAT Delhi03 Jun 2019AY 2009-10

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

Section 132ASection 153ASection 41(1)Section 68

…ished with regard to payment of trading liabilities by M/s Silver Rock Trading LLC based in Dubai. In the above case, the Ld. DR relied upon the following decisions with regard to cessation of liability u/s 41(1) of I.T. Act: 1. Rollatainers Ltd. Vs CIT 2011 339 ITR 54 (Delhi) 2. Logitronics (P.) Ltd. Vs CIT [2011] in 333 ITR 386 (Delhi) The Ld. DR relied upon the decision of E.N. Gopakumar Vs CIT (2016) 75 taxmann.com 215 (Kerala) with regard to validity of proceedings u/s 153A wherein following decisions were considered: • CIT V. Kabul Chawla [2016] 380 ITR 573/[2015l 234 Taxman 300/61 taxmann.com 412 (Delhi…

ACIT, New Delhi vs. Shri Charanjit Singh Sarna, New Delhi

The appeals of the Revenue are dismissed

ITA 3943/DEL/2015[2008-09]Status: DisposedITAT Delhi03 Jun 2019AY 2008-09

Bench: Shri G. D. Agrawal & Ms Suchitra Kamble

Section 132ASection 153ASection 41(1)Section 68

…ished with regard to payment of trading liabilities by M/s Silver Rock Trading LLC based in Dubai. In the above case, the Ld. DR relied upon the following decisions with regard to cessation of liability u/s 41(1) of I.T. Act: 1. Rollatainers Ltd. Vs CIT 2011 339 ITR 54 (Delhi) 2. Logitronics (P.) Ltd. Vs CIT [2011] in 333 ITR 386 (Delhi) The Ld. DR relied upon the decision of E.N. Gopakumar Vs CIT (2016) 75 taxmann.com 215 (Kerala) with regard to validity of proceedings u/s 153A wherein following decisions were considered: • CIT V. Kabul Chawla [2016] 380 ITR 573/[2015l 234 Taxman 300/61 taxmann.com 412 (Delhi…

Wasan Exports (P) Ltd., New Delhi vs. ITO, New Delhi

In the result, this ground of appeal of assessee is allowed for statistical purposes

ITA 1630/DEL/2012[2008-09]Status: DisposedITAT Delhi29 Apr 2019AY 2008-09

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

For Appellant: Shri Kapil Goel, AdvocateFor Respondent: Smt. Naina Soin Kapil, Sr. D.R

…to the nature of business only, it would constitute a capital receipt. The sum could not be taxed." 11.1. The assessing officer further noted that aforesaid Judgment is distinguished by the Hon’ble Delhi High Court in the case of Rollatainers Ltd., vs., CIT 339 ITR 54 (Del.) in which Delhi High Court also held that even if Section 28(iv) of the Act is not applicable, Section 41(1) of the Act is clearly applicable. The Ld. CIT(A) in the instant case found that though it is not case of applying Section 28(iv) of the Income Tax Act, but, this is a case, wherein, loan has been written off. Therefore, provisions of…

ITO, New Delhi vs. M/S. Wasan Esports (P) Ltd., New Delhi

In the result, this ground of appeal of assessee is allowed for statistical purposes

ITA 1586/DEL/2012[2008-09]Status: DisposedITAT Delhi29 Apr 2019AY 2008-09

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishi

For Appellant: Shri Kapil Goel, AdvocateFor Respondent: Smt. Naina Soin Kapil, Sr. D.R

…to the nature of business only, it would constitute a capital receipt. The sum could not be taxed." 11.1. The assessing officer further noted that aforesaid Judgment is distinguished by the Hon’ble Delhi High Court in the case of Rollatainers Ltd., vs., CIT 339 ITR 54 (Del.) in which Delhi High Court also held that even if Section 28(iv) of the Act is not applicable, Section 41(1) of the Act is clearly applicable. The Ld. CIT(A) in the instant case found that though it is not case of applying Section 28(iv) of the Income Tax Act, but, this is a case, wherein, loan has been written off. Therefore, provisions of…

DCIT Cir 6(3), Mumbai vs. Greaves Cotton Ltd, Mumbai

In the result, the appeal of the assessee is treated as

ITA 2575/MUM/2015[2005-06]Status: DisposedITAT Mumbai15 Mar 2019AY 2005-06

Bench: Shri B.R. Baskaran & Shri Amarjit Singh

For Appellant: Mrs. Arti VissanjiFor Respondent: Shri Vikash Kumar Agarwal
Section 115JSection 14A

…(1) of the Act. Alternatively, the AO held that the same is taxable u/s 28(iv) of the Act. 11.1. The Ld CIT(A) observed that the Hon’ble Delhi High Court has laid down principles for assessing the waiver of loan as income in the case of Rollatainers Ltd (339 ITR 54), according to which the waiver of term loan is not taxable, while the waiver of loan taken for trading transaction is assessable to tax. The Ld CIT(A) noticed that the assessee has claimed the loans as term loans, but did not show that the same was used only for acquisition of capital assets. Further, the assessee has credited the waived amoun…

Greaves Cotton Ltd, Mumbai vs. Asst CIT Cir 6(3), Mumbai

In the result, the appeal of the assessee is treated as

ITA 2482/MUM/2015[2005-06]Status: DisposedITAT Mumbai15 Mar 2019AY 2005-06

Bench: Shri B.R. Baskaran & Shri Amarjit Singh

For Appellant: Mrs. Arti VissanjiFor Respondent: Shri Vikash Kumar Agarwal
Section 115JSection 14A

…(1) of the Act. Alternatively, the AO held that the same is taxable u/s 28(iv) of the Act. 11.1. The Ld CIT(A) observed that the Hon’ble Delhi High Court has laid down principles for assessing the waiver of loan as income in the case of Rollatainers Ltd (339 ITR 54), according to which the waiver of term loan is not taxable, while the waiver of loan taken for trading transaction is assessable to tax. The Ld CIT(A) noticed that the assessee has claimed the loans as term loans, but did not show that the same was used only for acquisition of capital assets. Further, the assessee has credited the waived amoun…

ITO, New Delhi vs. M/S. Opera House Exports Ltd., New Delhi

In the result appeal of the Revenue is dismissed

ITA 2453/DEL/2015[2010-11]Status: DisposedITAT Delhi27 Feb 2019AY 2010-11

Bench: : Shri Amit Shukla & Shri L.P. Sahuassessment Year: 2010-11

Section 41(1)Section 68

…unclaimed liability as income of the assessee for the relevant assessment year. In this regard, provisions of section 28(iv) read with section 2(24) of the Act are applicable. 5 2. CIT vs. Karam Chand Thapar 222 ITR 112 (SC)[1996] 3.Rollatainers Ltd. vs. CIT 339 ITR 54 (Delhi) (MAG.) [2011] 4. CIT vs. Ramaniyam Homes (P.) Ltd. 384 ITR 530 (Madras) [2016] 5. Solid Containers Ltd. vs. DCIT 308 ITR 417 (Bombay) [2009] 6.CIT vs. Aries Advertising Pvt. Ltd. 255 ITR 510 (Mad.)” 4. The learned AR of the assessee, on the other hand, submitted that the Assessing Officer has made the additions without appreciating the fa…

ITO, Ward-2(2), Hyderabad vs. Gold Chick Hatcheries and Food Ltd, Hyd, Hyderabad

In the result, appeal of the revenue is dismissed

ITA 668/HYD/2016[2011-12]Status: DisposedITAT Hyderabad29 Nov 2018AY 2011-12

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahmanassessment Year: 2011-12 Income-Tax Officer, Vs. M/S Gold Chick Hatcheries & Ward – 2(2), Hyderabad Foods Ltd., Hyderabad. Pan – Aabcg4056E Appellant Respondent Revenue By: Smt. Alka Rajavanshi Jain Assessee By: Shri Ramesh Babu Kilaru Date Of Hearing: 26/09/2018 Date Of Pronouncement: /11/2018 O R D E R Per S. Rifaur Rahman, Am:

For Appellant: Shri Ramesh Babu KilaruFor Respondent: Smt. Alka Rajavanshi Jain
Section 115JSection 28Section 3(1)Section 4Section 41

…of Hon’ble Madras High Court in the case of CIT Vs. Ramaniyam Homes Pvt. Ltd. (supra). In the above decision, the Hon’ble Court has distinguished the cases of a) T.V. Sundaram Iyengar & Sons, 222 ITR 344 b) Iskrameco Regent Ltd. (supra) c) Rollatainers Ltd., 339 ITR 54 d) Mahindra & Mahindra Ltd., 261 ITR 501 12.1 The above decision is distinguishable on facts as the present case involves scheme of revival under BIFR. The one time settlement offered to the assessee based on the scheme against the erosion of capital. The compensation received by the assessee will reduce the erosion of capital and it did not incre…

Rollatainers Ltd. v. CIT (339 ITR 54) — Cited in 26 Judgments | BharatTax