https://www.taxtmi.com/caselaws?id=424187 ITAT, Chennai (AT) dismissed the revenue's appeal, upholding the CIT(A). The Tribunal held Sec.41(1) inapplicable where excess receipts over WDV were offered and accepted as short-term capital gain and creditor obligations meant amounts above crystallized bank liabilities were repayable, not waived. Citing SC authority, loan waiver is neither taxable as perquisite under Sec.28(iv) nor as remission/cessation under Sec.41(1), and Sec.28(iv) does not apply as waiver is not income under Sec.2(24). The shortfall after liquidation was treated as bad debts/business loss and allowed as a deduction. en-us Fri, 20 May 2022 00:00:00 +0530 Tue, 16 Sep 2025 11:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=424187 ITAT, Chennai (AT) dismissed the revenue's appeal, upholding the CIT(A). The Tribunal held Sec.41(1) inapplicable where excess receipts over WDV were offered and accepted as short-term capital gain and creditor obligations meant amounts above crystallized bank liabilities were repayable, not waived. Citing SC authority, loan waiver is neither taxable as perquisite under Sec.28(iv) nor as remission/cessation under Sec.41(1), and Sec.28(iv) does not apply as waiver is not income under Sec.2(24). The shortfall after liquidation was treated as bad debts/business loss and allowed as a deduction. Case-Laws Income Tax Fri, 20 May 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=424187