Dismissing the appeal of the revenue the Court held that ; S. 28(iv) of the IT Act does not apply on the present case since the receipts are in the nature of cash or money and S.41(1) of the IT Act does not apply since waiver of loan does not amount to cessation of trading liability. It is a matter of record that the Respondent has not claimed any deduction under S. 36 (1) (iii) of the IT Act qua the payment of interest in any previous year.( CANOs. 6949-6950 OF 2004, dt. 24.04.2018)
CIT v. Mahindra and Mahindra Ltd( 2018)404 ITR 1 / 165 DTR 337 /302 CTR 213 / 255 Taxman 305 (SC) , www.itatonline.org /CIT v. Dholgiri Industries (P) Ltd ( 2018) 404 ITR 1/ 165 DTR 337/302 CTR 213/ 255 Taxman 305 (SC) , www.itatonline.org CIT v.Jindal Equipments Leasing & Consultancy Services Ltd ( 2018) 404 ITR 1/ 165 DTR 337/302 CTR 213/ 255 Taxman 305 (SC) , www.itatonline.org CIT v. Ramaniyam Homes (P) Ltd ( 2018) 404 ITR 1/ 165 DTR 337 (SC)/ 302 CTR 213/ 255 Taxman 305 www.itatonline.orgEditorial: Mahindra and Mahindra Ltd v. CIT ( 2003) 261 ITR 501 ( Bom) (HC) is affirmed
S. 28(iv) : Business income- Waiver of loan-Remission or cessation of trading liability –Loan waiver cannot be assessed as cessation of liability , if the assessee has not claimed any deduction u/s 36(1)(iii) of the Act qua the payment of interests in any previous year and S.28(iv) does not apply if the receipts are in the nature of cash or money [ S. 4,36(1)(iii),41(1) ]