| COURT: | Madras High Court |
| CORAM: | T. Mathivanan J, V. Ramasubramanian J |
| SECTION(S): | 28(iv) |
| GENRE: | Domestic Tax |
| CATCH WORDS: | business income, capital vs. revenue receipt, OTSS, waiver of loan |
| COUNSEL: | Dr. Anitha Sumanth |
| DATE: | April 22, 2016 (Date of pronouncement) |
| DATE: | April 28, 2016 (Date of publication) |
| AY: | 2006-07 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 28(iv): The waiver by the lender of even the principal amount of loan constitutes a "benefit" arising from business and is assessable to tax as income. Logitronics 333 ITR 386 (Del), Rollatainers 339 ITR 54 (Del), Mahindra & Mahindra 261 ITR 501 (Bom) and Iskraemeco Regent 196 TM 103 (Mad) not followed | |
In our considered view, the waiver of a portion of the loan would certainly tantamount to the value of a benefit. This benefit may not arise from “the business” of the assessee. But, it certainly arises from “business”. The absence of the prefix “the” to the word “business” makes a world of difference
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