9911796707
TMI Blog2014 (5) TMI 1168X X X X Extracts X X X X X X X X Extracts X X X X ..... r T.V. Sundaram Iyengar and Sons Ltd. [1996 (9) TMI 1 - SUPREME Court] the waiver thereof may result in the income more so when it was transferred to the profit and loss account - CIT(A) has rightly confirmed the addition made by the AO to the extent of waiver to the cash credit loan - Decided against assessee. Addition on account of section 35(2AB) - approval is not in prescribed Form No. 3CM - Held that:- As decided in assessee's own case A.Y. 2008- 09 [2014 (1) TMI 1840 - ITAT PUNE] the finding of the Ld. CIT(A) are acceptable that if the approval is not in prescribed Form No. 3CM is not a serious discrepancy which should result in disallowance of the deduction to the assessee u/s. 35(2AB) of the Act. In this case, it is not disputed tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit loan waived by Banks. The appellant prays that: 1. Personal hearing may be granted 2. Demand of disputed demand may be stayed till hearing and disposal of appeal on merits 3. Any other relief Your Honors may deem fit 4. The appellant craves leave to addition, alter, amend or delete any of the above ground of appeal. 3. The assessee is a Private Company, engaged in the business of seed production and processing activities. In assessee's appeal, the only issue is with regard to addition of 1,27,53,855/- being cash credit loan waived by the bank. A similar issue arose ITA No.367/PN/2012 & another in assessee's own case for A.Y. 2008- 09 and the same was decided against the assessee by observing as under: "7. We have heard the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e other hand, if this loan was for trading purpose and was treated as such from the very beginning in the books of account, as per T.V. Sundaram Iyengar and Sons Ltd. [1996] 222 ITR 344 (SC), the waiver thereof may result in the income more so when it was transferred to the profit and loss account". In our opinion, the Ld. CIT(A) has rightly confirmed the addition made by the Assessing Officer to the extent of waiver to the cash credit loan. We do not find any merit in the appeal filed by the assessee. Accordingly, the ground taken by the assessee is dismissed." 3.1 Nothing contrary has been brought to our knowledge on behalf of assessee. Facts being similar, so following the same reasoning, we are not inclined to interfere with the findi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given by the Ld. CIT(A). The only reservation of the Assessing Officer was in respect of the "form" in which the Prescribed Authority has given the recognition which in this case is Secretary, Department of Scientific & Industrial Research, Government of India. The assessee filed the copy of the approval received from the competent authority. It is true that it is not in clear terms in Form No. 3CM which has been prescribed under the Income-tax Rule, 1962. We concur with the finding of the Ld. CIT(A) that if the approval is not in prescribed Form No. 3CM is not a serious discrepancy which should result in disallowance of the deduction to the assessee u/s. 35(2AB) of the Act. In this case, it is not disputed that the assessee has applied to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td., Income Tax Appeal No. 3704 of 2010 judgment dated 13-09-2012. The Hon'ble High Court has considered all the relevant decisions on this issue and held as under: "8) We have considered the submissions. The issue arising in this case stand covered by the decision of this Court in the matter of Mahindra & Mahindra (supra).The decision of this court in the matter of Solid Containers (supra) is on completely different facts and inapplicable to this case. In the matter of Solid Containers (supra) the assessee therein had taken a loan for business purpose. In view of the consent terms arrived at, the amount of loan taken was waived by the lender. The case of the assessee therein was that the loan was a capital receipt and has not been cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e's case is squarely covered by the decision in the case of M/s. Xylon Holdings Pvt. Ltd. (supra) as the amount waived pertains to the term loan which was taken by the assessee for acquition of the assets. After considering the detail reasoning given by the Ld. CIT(A), in our opinion no interference is called for. Accordingly, Ground No. 3 is dismissed." 6.1 Nothing contrary has been brought to our knowledge on behalf of revenue. Facts being similar, so following the same reasoning, we are not inclined to interfere with the finding of CIT(A), who has rightly deleted the addition made by the Assessing Officer on account of principal amount of waiver of loan. We uphold the same. 7. In the result, the appeal filed by the assessee as well as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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