Taxability Of Loan Waiver depends on whether loan was used for capital or revenue purposes

Logitronics (F) Ltd. Vs. CIT & ANR. (Delhi High Court)- In the instant case, it was held that waiver of loan may be considered as income only when the loan is taken for trading purposes and not for acquisition of a capital asset and is also  treated as such from the beginning in the books of accounts.

It was also held, in the aforesaid case that where the loans that were borrowed by the assessee were a source of funds employed in its business of financing, it could not be said that the business of the ass

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