Waiver of loan amounts to cessation of liability other than trading liability

Technichem Organics Pvt. Ltd Vs ITO (ITAT Ahmedabad) It is pertinent to note that the assessee has used the loan amount for capital assets and this fact was never disputed by the Revenue. The waiver of principal amount of loan which was made by the Bank has been deducted by the assessee from the outstanding loan and credited to reserves & surplus. The CIT(A) has relied upon the decision of Hon’ble Supreme Court in the case of TV Sundaram Iyengar & Sons (supra) and decision of the Hon’ble Madras High Court in case of Ramniyam Homes Pvt. Ltd. It is seen that in case of TV Sundaram Iy...