Tribunal held that the assessee has not claimed any deduction in respect loans in any of the earlier assessment years hence provision of S.41(1) cannot be invoked . The Tribunal also held that to invoke the provisions of S.28(iv) the assessee should receive any benefit or perquisite other than cash or money . As the assessee received the benefit on account of waiver of loan which is in the form of cash S. 28(iv) cannot be invoked . Relied on CIT v. Mahindra and Mahindra Ltd ( 2018) 404 ITR 1 (SC) ( ITA No. 606/Viz/ 2018 dt 5-6 -2020 ) ( AY. 2013-14)
ITO v. Sri Vasavi Polymers Pvt Ltd ( 2020) 2020] 117 taxmann.com 236 ( Vishakha) (Trib)
S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Waiver of loan is neither taxable u/s 41(1) nor u/s 28(v ) of the Act .[ S.28 (v) ]