Waiver of Working Capital Loan Taxable u/s 28(iv) and not u/s 41(1)

ITO Vs M/s Sri Vasavi Polymers P. Ltd. (ITAT Visakhapatnam) The issue under consideration is whether CIT(A) is correct in deleting the addition made by AO under section (u/s) 41(1) for waiver of working capital loan and charge it under section 28 of the Act? ITAT states that the twin conditions required to be satisfied for taxing the benefit received by the assessee. i.e., the expenditure should be Revenue expenditure or the loss incurred and the same ought to have been allowed as deduction. The benefit received by the assessee should be relating to such expenditure which was claimed and allow...