9911796707
TMI Blog2013 (9) TMI 890X X X X Extracts X X X X X X X X Extracts X X X X ..... 41(1) of the Act – Reliance has been placed upon the judgment in the case Iskraemeco Rent Limited Vs CIT reported in [2010 (11) TMI 43 - Madras High Court], wherein it has been held that assessee had taken loan for purchase of capital asset and later on the loan was waived off by the Bank, it does not amount to a benefit arising out of business and it is also not even remission of the liability, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case the Tribunal was right in upholding the order of CIT(A) who held that cessation of liability on account of one time settlement with IFCI and other creditors amounting to Rs.4.93 crores cannot be subjected to tax under Section 28(iv) or under Section 41(1) of the I.T.Act ?" 2. The respondent/assessee is engaged in the manufacture of medical devices. On 02.02.2007 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nst outstanding balance of Rs.564.29 lakhs. Thereafter, the assessee wrote back an amount of Rs.9,93,97,793/- in its notes on account under the head 'debtors and creditors, loan balances and others'. The assessee had also adjusted the amount of Rs.4.93 crores against current year expenditure. The assessee explained to the Assessing Officer that the provisions of Section 28(iv) and Section 41(1) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puted regarding the factual position, the Income Tax Appellate Tribunal took note of decision of this Court in the case of Iskraemeco Rent Limited Vs CIT reported in (2011) 331 ITR 317 (Mad), wherein, it was held that the assessee had taken loan for purchase of capital asset and later on the loan was waived off by the Bank, it does not amount to a benefit arising out of business and it is also not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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