Waiver of loan cannot be brought to tax u/s 28(iv) as Subsidy

Essar Shipping Limited Vs CIT (Bombay High Court) The issue under consideration is whether the loan given by the Government which was subsequently waived off can be taxed under Section 28(iv) of Income Tax Act as Subsidy? In the preset case, Appellant is a resident company assessed under the Act. Assessee filed a revised return of income wherein an amount was claimed as a deduction being the amount of loan given by the Government of Karnataka which was subsequently waived. The Assessing Officer did not accept the claim of the appellant. Assessing Officer observed that waiver of loan benefited ...