9911796707
TMI Blog2024 (7) TMI 902X X X X Extracts X X X X X X X X Extracts X X X X ..... ission to the AO was solely in the context of section 41(1) of the Act, ruling out its applicability in the case of the assessee. Thus, this matter needs reconsideration particularly as to under which section the benefit accruing to the assessee under One Time Settlement Scheme is taxable. And for the said purpose, the facts relevant to the waiver of the loans needs to be brought on record. The matter is therefore restored back to the AO for consideration afresh of the taxability of loan waived under one time settlement scheme by the bank. Appeal of the Revenue is allowed for statistical purpose. - Smt. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member For the Assessee : Shri Jaimin A. Gandhi, AR For the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that when the AO confronted the assessee with the taxability of waiver of the loan by its bank under OTS, the assessee explained that the same was not taxable in terms of provisions of section 41(1) of the Act. The order of the AO, however reveals that he rejected this contention of the assessee and relying upon the decision of the Hon ble Madras High Court in the case of Mahindra Mahindra Ltd. Vs. CIT, (2018) 93 taxmann.com 32 (SC), he held that the quantum of impugned loan waiver was taxable under section 28(iv) of the Act. The AO , we have noted , held so without dealing with the assesses contention of the same being not taxable u/s 41(1) of the Act. Thus, while the assessee contended that it was not taxable under section 41(1) of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 41(1) of the Act. 6. In the present case the taxability of the loan waived has not been considered in terms of the provisions of section 41(1) of the Act by the authorities below, though surprisingly the assesses submission to the AO was solely in the context of section 41(1) of the Act, ruling out its applicability in the case of the assessee. 7. In the light of the same, this matter needs reconsideration particularly as to under which section the benefit accruing to the assessee under One Time Settlement Scheme is taxable. And for the said purpose, the facts relevant to the waiver of the loans needs to be brought on record. The matter is therefore restored back to the AO for consideration afresh of the taxability of loan waived unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
