The assessee\u00a0 entered into a one time settlement (OTS) with banks whereby portion of interest charged by bank and part of principal amount stood waived off. Assessee offered interest on waived loan to tax however treated principal amount of loans as capital receipts. The Assessing Officer held that the waiver of loan is taxable. The CIT(A) up held the order of the Assessing Officer. The Tribunal remanded to the Assessing Officer. On miscellaneous application the Tribunal held that waiver of principal amount of working capital loan was liable to be assessed under section 41(1) of the Act. On writ the Court held that the\u00a0 provision of\u00a0 section 41(1) cannot be applied. The Court also held that\u00a0 the amendment to section 28 is made Finance Bill, 2023.\u00a0 Court held that\u00a0 the\u00a0 nature of loan would be of no relevance and waiver of loan in instant case would not satisfy test to make it taxable under section 28(iv) of the Act.\u00a0\u00a0\u00a0 Amendment to section 28 vide Finance Act, 2023, wherein legislature included ‘benefit’ in form of ‘cash’ arising from business or profession as income chargeable to tax, would reveal that ‘benefit’ in form of ‘cash’ would fall outside ambit of section 28(iv) of the Act. Accordingly the\u00a0 order of Tribunal dismissing the miscellaneous application is set aside. High Court\u00a0 directed the Tribunal to reconsider the application. Court also held that the\u00a0 whether writ petition can be entertained or not it is with the\u00a0\u00a0 discretion of the Court. Referred, CIT v. Mahindra and Mahindra [2018]255 Taxman 305\/\u00a0 404 ITR 1 (SC)\u00a0 (AY. 2006-07)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 254(2) : Appellate Tribunal-Rectification of mistake apparent from the record-Value of any benefit or perquisites-Converted in to money or not-Borrowed term loans and working capital loans from bank-One time settlement (OTS)-Principal value of loan-Order of Tribunal dismissing the miscellaneous application is set aside-Directed the Tribunal to reconsider the application-Writ petition-Discretion of the Court. [S.4, 28(iv), Art. 226] <\/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-39530","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-ahA","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/39530","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=39530"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/39530\/revisions"}],"predecessor-version":[{"id":51842,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/39530\/revisions\/51842"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=39530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=39530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=39530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}