Case Law Details
Issue:– Whether waiver of principal amount would constitute income falling under section 28(iv) of the Income Tax Act being the benefit arising for the business?
Held by ITAT: Tribunal held in para 12 of its order that the term loan had admittedly been used by the assessee for acquiring capital assets. Therefore, the Tribunal followed the decision of this Court in Iskraemeco Regent Limited v. CIT (2011) 196 Taxman 103 and confirmed the order of the first Appellate Authority. Hence, this appeal by the revenue.
Held by Madras High Court-
Taxability of Loan Waiver
What is treated as income chargeable to income tax under the head ‘profits and gains of business or profession’ under section 28(iv), is “the value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession.”
Please become a Premium member. If you are already a Premium member, login here to access the full content.
