Tax on Remission of Principal amount of loan taken for capital investment

Pr. CIT Vs Modern Threads (I) Ltd. (Rajasthan High Court) High Court held that loan which was taken was capital investment and always treated in the capital account as liability and if it is so, it will naturally go as wiping out the capital liability. Income which could be taxed under section 28(iv) must not only be referable to a benefit or perquisite, but it must be arising from business and section 28(iv) does not apply to benefits in cash or money. FULL TEXT OF THE HIGH COURT JUDGMENT / ORDER IS AS FOLLOWS: By way of this appeal, the appellant has challenged the judgment and order of th...