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	<title>TaxGuru &#187; cipla</title>
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		<title>Mumbai ITAT rules on taxability of waiver of loan</title>
		<link>http://taxguru.in/income-tax-case-laws/mumbai-itat-rules-on-taxability-of-waiver-of-loan.html</link>
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		<pubDate>Sat, 21 Nov 2009 02:14:36 +0000</pubDate>
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				<category><![CDATA[Income Tax Case Laws]]></category>
		<category><![CDATA[appellate authority]]></category>
		<category><![CDATA[books of account]]></category>
		<category><![CDATA[business income]]></category>
		<category><![CDATA[capital gains]]></category>
		<category><![CDATA[cipla]]></category>
		<category><![CDATA[holding company]]></category>
		<category><![CDATA[investing in shares]]></category>
		<category><![CDATA[itat]]></category>
		<category><![CDATA[loan waive and business income]]></category>
		<category><![CDATA[loan waiver not business income]]></category>
		<category><![CDATA[loan waiver not taxable]]></category>
		<category><![CDATA[profit and loss]]></category>
		<category><![CDATA[profit and loss account]]></category>
		<category><![CDATA[share application]]></category>
		<category><![CDATA[taxability of loan waived]]></category>
		<category><![CDATA[unsecured loan]]></category>

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		<description><![CDATA[This article summarizes a recent ruling of the Mumbai Income Tax Appellate Tribunal (ITAT) [2009-TIOL-707-ITAT-MUM] in the case of Cipla Investments Ltd. (Taxpayer) on taxability of waiver of loan. The ITAT held that since the loan received was on capital account, its subsequent waiver too was on capital account. Hence, the loan waived was not liable to be taxed as profits and gains from its business (business income) under the provisions of the Indian Tax Law (ITL). The ITAT also held that waiver would not be taxable as business income if a taxpayer was not allowed deduction of the loan amount earlier.]]></description>
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