The assesse is carrying on the business of accepting deposits from members and lending the same to non members. The assessee treated the waiver of principal component of deposits and debentures. The AO treated the same as revenue receipts. Tribunal confirmed the order of the AO. On appeal high Court held that waiver of principal component of deposits and debentures constituted capital receipt. Followed ITA No 99 of 2009.(AY. 2007 -08, 2008 -09)
Manipal Sowbhagya Nidhi Ltd. v. Dy.CIT (2019) 112 Taxman.com 325 / (2020) 268 Taxman 330 (Karn.)(HC) Editorial: SLP of revenue is dismissed Dy CIT v Manipal Sowbhagya Nidhi Ltd (2020) 268 Taxman 329 (SC)
S. 4 : Charge of income-tax–Capital or revenue–Business of accepting deposits from members and lending the same to non members-Waiver of deposit–Waiver of principal component of deposits and debentures–Capital receipts. [S. 28(i)]