Case Law Details
Case Name : CIT Vs Ramaniyam Homes (P.) Ltd. (Madras High Court)
Related Assessment Year : 2006-07
Courts :
All High Courts Madras High Court
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CA Deepak Goel
Waiver of loan – Madras HC has reignited this issue. Held that Waiver of loan is taxable under section (‘u/s’) 28(iv)
Brief
Under one time settlement the bank waived loan amount (used by the assessee for acquiring capital assets) which includes both principal amount of loan and interest on l
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Can anybody further throw light on the following para narrated by the Madras High Court while giving decision regarding Chargeability of waived loan as taxable :
” two entries are made in the books of account, one in the profit and loss account where payments are entered – ; and
“Alternatively, the amount representing the waived portion of the loan is shown as a capital receipt in the profit and loss account its”