Waiver of loan taken for acquiring a capital asset is taxable

Issue:– Whether  waiver of principal amount would constitute income falling under section 28(iv) of the Income Tax Act being the benefit arising for the business? Held by ITAT: Tribunal held in para 12 of its order that the term loan had admittedly been used by the assessee for acquiring capital assets. Therefore, the Tribunal followed the decision of this Court in Iskraemeco Regent Limited v. CIT (2011) 196 Taxman 103 and confirmed the order of the first Appellate Authority. Hence, this appeal by the revenue. Held by Madras High Court- Taxability of Loan Waiver What is treated as incom...