The assessee showed certain amount as\u00a0 an exceptional item of\u00a0 waiver of unsecured loan liability. The notes to accounts stated that \u201cduring the year, the company has waived the loan liability\u00a0 which was classified under \u201cunsecured loans\u201d since it was no longer required to be paid. The Assessing Officer\u00a0 treated the waiver of loan amounting as income of the year under section\u00a028(iv)\u00a0read with section\u00a041(1)\u00a0of the Act and brought it to tax. The Commissioner (Appeals) allowed the assessee\u2019s appeal. On appeal dismissing the appeal of the Revenue the Tribunal held that the amount written off was\u00a0 the amount advanced for purchase of tools cannot be assessed as business income.\u00a0 \u00a0(AY. 2005-06)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Capital or revenue-Assets and liabilities of subsidiary absorbed by holding company-Written off-Advance for purchase of tools-Not assessable as business income. [S. 28(iv)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-36012","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-9mQ","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/36012","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=36012"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/36012\/revisions"}],"predecessor-version":[{"id":36013,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/36012\/revisions\/36013"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=36012"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=36012"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=36012"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}