Assessee defaulted in repayment of Rs. 3.62 crores due to bank. During year, settlement with bank was materialized and assessee had finally made to pay Rs. 1.97 crores. Accordingly, balance of Rs. 1.64 crores being remission of capital account was transferred to general reserve. AO held that waived amount was income under S. 41(1) or 28(iv) of the Act. Tribunal following the judgement in o CIT v. Mahindra and Mahindra Ltd. (2018) 255 Taxman  305 (SC) held that waiver of loan does not amount to cessation of trading liability. Since authorities below had not given any finding of fact whether whole amount of loan was utilised either for purpose of acquiring a capital asset or for purpose of business activity or trading activity matter was to be remitted back to AO  for reconsideration.  (AY. 2008 -09)