https://www.taxtmi.com/caselaws?id=27239 The High Court of Bombay ruled that a payment made by foreign collaborators to partially extinguish a bank guarantee arranged for a company did not constitute the company's income under section 28(iv) of the Income Tax Act, 1961. The court held that the payment was made to discharge the collaborators' own liability, not to benefit the company directly. Therefore, the court dismissed the Revenue's application, emphasizing that the payment did not represent a benefit arising from the company's business. This judgment clarifies the distinction between payments made by guarantors to creditors and payments made directly to benefit debtors. en-us Thu, 23 Aug 1984 00:00:00 +0530 Thu, 11 Feb 2010 16:22:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27239 The High Court of Bombay ruled that a payment made by foreign collaborators to partially extinguish a bank guarantee arranged for a company did not constitute the company's income under section 28(iv) of the Income Tax Act, 1961. The court held that the payment was made to discharge the collaborators' own liability, not to benefit the company directly. Therefore, the court dismissed the Revenue's application, emphasizing that the payment did not represent a benefit arising from the company's business. This judgment clarifies the distinction between payments made by guarantors to creditors and payments made directly to benefit debtors. Case-Laws Income Tax Thu, 23 Aug 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27239