Loan paid by guarantor to lender on default by borrower is ‘capital receipt’ for borrower

ITAT DELHI BENCH ‘D’ Luxor Writing Instruments (P.) Ltd. versus Deputy Commissioner of Income-tax,Circle 4(1), New Delhi IT Appeal Nos. 1108 & 2386 (Delhi.) OF 2007 [ASSESSMENT YEAR 2002-03] SEPTEMBER 21, 2012 ORDER I.C. Sudhir, Judicial Member The revenue in their grounds to the appeal has raised following issues: 1. “Whether, on the facts and in the circumstances of the case, the learned CIT (Appeals) was justified in allowing the relief of Rs. 108,49,67,917/- remitted by Gillette USA for repayment of its debts pursuant to sales of its entire sharehol...