Taxability of benefit of waiver of loans and unpaid interest for borrower

Court : Delhi Income Tax Appellate Tribunal Citation: Addl. CIT Vs. Rollatainers Ltd. [2010- TIOL-379-ITAT-DEL] Brief :The ITAT ruled that waiver of unpaid interest, which was not allowed as deduction in the past, is not liable to tax under the specific provisions of Indian Tax Laws (ITL) which provide for taxation of remission of trading liability. The ITAT also ruled that waiver of term loans used for acquiring capital assets is not liable to tax under the specific provisions of the ITL which provide for taxation of benefit or perquisite arising from business. The ITAT further held that wai...