“waiver of loan”

DCIT - 19(3), Mumbai vs. M/S. Ramani Exports, Mumbai

In the result, appeal of the Revenue are dismissed and cross objection filed by the assesses are allowed

Bench: Shri Amit Shukla, Jm & Ms. Padmavathy S, Am आयकरअपीलसं./ I.T.A. No.609 & 608/Mum/2023 (निर्धारणवर्ा / Assessment Year 2013-14 & 2014-15) Dcit-19 (3). M/S. Ramani Exports. Matru Mandir, 2Nd Floor, 6/B, Shreeji Darshan, Tata बिधम/ Room No. 206, Grant Road, No. 01 & 02, Opera Road. Mumbai-400 006 House. Mumbai-400 004 Vs.

capital in nature. Hon’ble Supreme Court in the case of Mahindra and Mahindra Ltd (Supra), while deciding the issue of waiver of loan, whether constitute income either u/s.41(1) or u/s. 21 (IV) of the Act. The principle laid down by the Hon‟ble Supreme Court in the said ... waiver of part of the principal or interest repayable, or a complete waiver of both the loan as well as interest amounts. Hence, waiver of loan by the creditor results in the debtor having extra cash in his hand. It is receipt in the hands of the debtor/assessee. The short

ITO Ward-4(1)(3), Mumbai vs. M/S Ashik Wollen Mills Limited, Mumbai

In the result, this appeal of revenue is allowed in terms indicated here

remission of liability in the nature of trading. It is in these circumstances that the claim of deduction in respect of the waiver of loan amounting to Rs.8,36,99,463/- was granted. The Assessing Officer was directed to allow it.” Ld. CIT-DR submitted that the decision in Grahm ... such a vital factor remained un-noticed and the Hon’ble Bombay High Court relying upon Shree Pipes Limited (supra) held that the waiver of loan Page 10 of 20 M/s Ashik Woolen Mills Limited, ITA No. 3021/Mum/2022 and CO No. 10/Mum/2023 Assessment year 2011-12 cannot be taxed

Jsw Steels Ltd, Mumbai vs. DCIT CC 8(3), Mumbai

In the result, the appeal by the assessee is allowed for statistical purposes

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhail

then there cannot be any addition under this section. In the case of Hon'ble Bombay High Court in Solid Containers (supra) the waiver of loan was taken for trading activity and the assessee has credited such a waiver to the profit & loss account and claimed ... Before us one more argument was taken by the Ld. CIT D.R. that provision of section 28(iv) would get attracted because the waiver of loan amounts to value of any benefit or perquisite, whether convertible into money or not, arising from business. First of all it is seen that

Tikona Trust, Mumbai vs. Assistant Director of Income Tax, CPC, Bangaluru

In the result of the appeal of the assessee is partly allowed

Bench: Shri Baskaran Br, Am & Shri Aby T. Varkey, Jm आयकरअपीलसं/ I.T.A. No.1117/Mum/2022 (निर्धारणवर्ा / Assessment Year: 2018-19) Tikona Trust बिधम/ Assistant Director Of 3A, 3Rd Floor Corpora, Lbs Marg Income Tax, Cpc Vs. Bhandup West, Cpc, Bangaluru, Mumbai-400078 Karnataka- 560500

said case are extracted below:- 16 AY- 2018-19 Tikona Trust, Mumbai “……The short but cogent issue in the instant case arises whether waiver of loan by the creditor is taxable as a perquisite under Section 28 (iv) of the IT Act or taxable as a remission of liability under ... matter of record that the amount of Rs. 57,74,064/- is having received as cash receipt due to the waiver of loan. Therefore, the very first condition of Section 28 (iv) of the IT Act 9which says any benefit or perquisite arising from the business shall

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

In the result, appeal filed by the Revenue is dismissed

apply only in respect of benefit or perquisite received in kind. It was further held by Hon'ble Supreme Court that waiver of loan is in respect of money transaction and therefore would not be in nature of any benefit or perquisite as construed in section ... charge the value of any benefit or perquisite meaning thereby that the benefit must be in kind. The Court further held that the waiver of loan is in respect of money transaction and, therefore, would not be in nature of any benefit or perquisite as construed in section

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

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

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:

case and in law, the Ld CIT(A) has erred in deciding that the addition made by the AO in respect of waiver of loan treating the same as taxable does not tantamount to concealment of income/ filing of inaccurate particulars of M/s Anik Industires Ltd., Mumbai. income ignoring ... case and in law, the Ld CIT(A) has erred in deciding that the addition made by the AO in respect of waiver of loan treating the same as taxable does not tantamount to concealment of income/filing of inaccurate particulars of income ignoring the fact that the waiver of loan

ACIT Cent. Cir 5(4), Mumbai vs. Shri Sunil B.Dalal, Mumbai

In the result, Appeal of The ld AO is dismissed

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm The Asst. Commissioner Of Income Tax, Shri Sunil B Dalal Central Circle 5(4) D/52, Tarabaug Estate, Room No.1927, 19Th Floor, Charni Road, Vs. Air India Bldg, Mumbai-400 004 Nariman Point, Mumbai-400 021 (Respondent) (Appellant) Pan No. Aaepd3658F Assessee By : Shri Sashi Tulsiyan, Ar Revenue By : Shri Hoshang B. Irani, Dr Date Of Hearing: 06.07.22 Date Of Pronouncement : 12.07.2022

Supreme Court was followed by him, which cannot be found fault with. In the end, he submitted that the waiver of loan cannot be taxed under Section 28(iv) of the Act as it is not for the purpose of business and further it is in form of cash ... waiver of part of the principal or interest repayable, or a complete waiver of both the loan as well as interest amounts. Hence, waiver of loan by the creditor results in the debtor having extra cash in his hand. It is receipt in the hands of the debtor/assessee. The short

Dy CIT Dd-4(2), Mumbai vs. M/S Sheth Developers P. Ltd., Mumbai

In the result, appeal of the Revenue in ITA No

Para 3(vi)(11) of Auditors Report qualified the financial statements and had specifically mentioned that the benefit of waiver of loan on OTS with the lenders had been credited to the profit & loss account of the company prior to the fulfilment of the conditions of the settlement, and that ... consider the notes' to the accounts, wherein it was clearly mentioned by the auditors that by crediting the benefit of the amount of waiver of loan' which had not yet accrued' to the company the loss to the extent of Rs. 162,30,33,516/- was translated into profit

Dy CIT Dd-4(2), Mumbai vs. M/S Sheth Developers P. Ltd., Mumbai

In the result, appeal of the Revenue in ITA No

Para 3(vi)(11) of Auditors Report qualified the financial statements and had specifically mentioned that the benefit of waiver of loan on OTS with the lenders had been credited to the profit & loss account of the company prior to the fulfilment of the conditions of the settlement, and that ... consider the notes' to the accounts, wherein it was clearly mentioned by the auditors that by crediting the benefit of the amount of waiver of loan' which had not yet accrued' to the company the loss to the extent of Rs. 162,30,33,516/- was translated into profit

Sheth Developers P. Ltd., Mumbai vs. ACIT Central Ciecle-4(2), Mumbai

In the result, appeal of the Revenue in ITA No

Para 3(vi)(11) of Auditors Report qualified the financial statements and had specifically mentioned that the benefit of waiver of loan on OTS with the lenders had been credited to the profit & loss account of the company prior to the fulfilment of the conditions of the settlement, and that ... consider the notes' to the accounts, wherein it was clearly mentioned by the auditors that by crediting the benefit of the amount of waiver of loan' which had not yet accrued' to the company the loss to the extent of Rs. 162,30,33,516/- was translated into profit

M/S Sheth Developers P. Ltd., Mumbai vs. Dy CIT Central Circle- 4(2), Mumbai

In the result, appeal of the Revenue in ITA No

Para 3(vi)(11) of Auditors Report qualified the financial statements and had specifically mentioned that the benefit of waiver of loan on OTS with the lenders had been credited to the profit & loss account of the company prior to the fulfilment of the conditions of the settlement, and that ... consider the notes' to the accounts, wherein it was clearly mentioned by the auditors that by crediting the benefit of the amount of waiver of loan' which had not yet accrued' to the company the loss to the extent of Rs. 162,30,33,516/- was translated into profit

Dy. CIT Cir 6 (1)(2), Mumbai vs. M/S Blue Foods Pvt Ltd., Mumbai

In the result, the appeal is allowed for statistical purposes

Bench: Shri Amarjit Singh, Am & Ms. Kavitha Rajagopal, Jm आयकरअपीलसं./ I.T.A. No. 6543/Mum/2019 (निर्धारणवर्ा / Assessment Year: 2011-12) Dcit Cr. 6(1)(2), M/S Blue Foods Pvt. Ltd. R. No. 506, 5Th Floor, Plot No. 8, Marol Co-Op. बिधम/ Industrial Estate, Near Aayakar Bhavan, M. K. Marol Bhavan, Marol, Vs. Road, Mumbai-400 020 Andheri-East, Maharashtra-400 059 स्थायीलेखासं./जीआइआरसं./ Pan No. Aabcb4617L (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant : Shri Samir Shah, Ld. Ar By प्रत्यथीकीओरसे/Respondent : Shri C. T. Mathews, Ld. Dr By सुनवाईकीतारीख/ : 21.03.2022 Date Of Hearing घोषणाकीतारीख / : 02.05.2022 Date Of Pronouncement आदेश / O R D E R Per Kavitha Rajagopal: This Appeal Has Been Filed By The Revenue As Against The Order Of Ld. Commissioner Of Income Tax (Appeals) – 12, Mumbai In Short Referred As ‘Ld. Cit(A)’ Dated 11.06.2019 Pertaining To Ay 2011-12. 2

erred in granting relief to the assessee and failed to appreciate the fact the 3 I.T.A. No. 6543/Mum/2019 M/s Blue Foods Pvt. Ltd. waiver of loan amount is not in the nature of capital receipt and that this was not a normal business transaction and the reason for the waiver ... below that was not verified which impliedly states that the AO has failed to establish that assessee has directly benefitted due to the waiver of loan amount. The Ld. CIT(A) has categorically held that the amount benefitted through waiver of loan was in the nature of capital receipt

Metal Tube and Rolling Mills, Mumbai vs. ITO WD 24(2)(5), Mumbai

In the result, appeal filed by the assessee is allowed

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Amarjit Singh, Hon'Blemetal Tubes & Rolling Mills V. Income Tax Officer – 24(2)(5) 1St Floor, Metal Tube & Rolling Mills Mumbai Marol Maroshi Road, Marol Village Andheri (E), Mumbai – 400059 Pan: Aaefm9353N (Appellant) (Respondent) Assessee By : Shri Deepak Tralshawala & Shri D.B. Shah Department By : Shri T. Shankar

Metal Tubes & Rolling Mills Prime fascia it appears that reduction of secured loons of Rs.2,84,35,326.82 is attributable to waiver of loan by financial institution in A Y. 2007-08 which was appearing in the balance sheet of AY. 2006-07, Coupled with the corresponding argumentation ... partners capital of Rs. 1,74,55,796.45 Such waiver of loan out to have been offered to tax in the return of income of AY. 2007-08. The Income has escaped assessment. Since the assessee has not offered this income to tax in the return of income, I have

Larsen & Toubro Ltd, Mumbai vs. DCIT 2(2), Mumbai

In the result, appeals filed by the assessee are partly allowed and the appeals filed by the Revenue are dismissed

Bench: Shri S.Rifaur Rahman () & Shri Amarjit Singh ()

Apex Court in the case of CIT vs. Mahindra & Mahindra Ltd.93 taxmann.com 32(SC) wherein the Apex Court has held that waiver of loan is a monetary benefit and, hence, it does not come within the ambit of section 28(iv) of the Act. Therefore, the amount of Rs.51 ... good law. The finding by the High Court that the provision of section 28(iv) of the 42 Act is applicable to a waiver of loan is contrary to the decision of Mahindra & Mahindra Ltd. (supra) wherein the Apex Court has held that waiver of loan being a monetary benefit

Jt. CIT (OSD) - 4(3)(2), Mumbai vs. M/S Supertex Industries Ltd., Mumbai

Bench: Shri G. S. Pannu & Shri Vikas Awasthyआअसं. 926/मुं/2020(िन.व. 2007-08) Jt. Cit (Osd)-4(3)(2), Room No. 649, 6Th Floor, Aayakar Bhavan, Mumbai-400020. ...... अपीलाथ" /Appellant बनाम Vs. M/S Supertex Industries Ltd. 45/49, Balkrishna Krupa, Babu Genu Road, Princes Street, Kalbadevi, Mumbai-400002 Pan: Aaacs7274D ..... "ितवादी/Respondent अपीलाथ" "ारा/ Appellant By : Sh. Abhijeet Chaudhary "ितवादी "ारा/Respondent By : Sh. Rajesh Shah. सुनवाई की ितिथ/ Date Of Hearing : 14/12/2021 घोषणा की ितिथ/ Date Of Pronouncement : 10/03/2022 आदेश/ Order This Appeal By The Revenue Is Directed Against The Order Of Commissioner Of Income Tax (Appeals)-9, Mumbai [Hereinafter Referred To As ‘The Cit(A)’] Dated 25.11.2019 For The Assessment Year (Ay) 2007-08. The Revenue In Appeal Has Raised Following Grounds:

interest expenditure under section 43B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). According to the Assessing Officer (AO), waiver of loan has resulted in benefit/gain to the borrower. Hence, the principal amount and the interest waved by the Bank is taxable. The AO vide order ... passed under section 143(3) r.w.s. 147 of the Act, interalia, made addition of Rs. 3,54,85,810/- in respect of the waiver of loan made under OTS by IDBI Bank Ltd. Aggrieved by the assessment order, the assessee filed appeal before the CIT(A) challenging re-opening