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Loan waived by lender is not taxable in the hand of borrower
Case Law Details
- Case Name
- Cipla Investments Ltd. Vs ITO (ITAT Mumbai)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2003- 2004
- Courts
- ITAT Mumbai
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RELEVANT PARAGRAPH
9. We have considered the issue. As the facts indicate the holding company has advanced funds to the assessee company in 1998 which was received as share application money, later on transferred to unsecured loan. The amounts were utilized in investments and the incomes thereon were offered under the head ‘capital gains’ and not as ‘business income’. As rightly held by the CIT(A), provisions of section 41(1) invoked by the A.O. does not apply. For attracting the provisions of section 41(1) the first requisite condition to be satisfied ...
