The assessee showed certain amount as  an exceptional item of  waiver of unsecured loan liability. The notes to accounts stated that “during the year, the company has waived the loan liability  which was classified under “unsecured loans” since it was no longer required to be paid. The Assessing Officer  treated the waiver of loan amounting as income of the year under section 28(iv) read with section 41(1) of the Act and brought it to tax. The Commissioner (Appeals) allowed the assessee’s appeal. On appeal dismissing the appeal of the Revenue the Tribunal held that the amount written off was  the amount advanced for purchase of tools cannot be assessed as business income.   (AY. 2005-06)