Waiver of Debentures Not Taxable; Set-off of Losses Must Be Allowed – ITAT Pune

Mithi Software Technologies Private Limited Vs ITO (ITAT Pune) Waiver of Debentures Not Taxable; Set-off of Losses Must Be Allowed — ITAT Pune The Pune Bench of the ITAT allowed the assessee-company’s appeal for AY 2014-15, holding that waiver of non-convertible debentures of ₹75 lakh is a capital receipt not chargeable to tax, and further directed allowance of set-off of brought-forward business losses and unabsorbed depreciation. On the first issue, the Tribunal noted that the debentures were long-term capital borrowings from SIDBI Venture Capital Ltd. and that no interest on such debe...