https://www.taxtmi.com/caselaws?id=776236 The ITAT Mumbai upheld the CIT(A)'s admission of the assessee's additional ground regarding non-taxability of the waiver of a working capital loan, rejecting the Revenue's objection that such claim was not made in the original or revised return. Relying on Supreme Court precedents, the tribunal confirmed that additional claims can be raised before the ITAT. The waiver amount, credited as income and offered to tax, was held not taxable under Section 41(1) as it was not a trading liability. Further, Section 28(iv) was deemed inapplicable since the waiver constituted a cash receipt, not a non-monetary business benefit. The decision aligned with the Bombay HC ruling in Essar Shipping Ltd., concluding the waiver amount could not be taxed under Section 28(iv). Grounds raised by the Revenue were dismissed. en-us Fri, 03 Jan 2025 00:00:00 +0530 Thu, 07 Aug 2025 07:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=776236 The ITAT Mumbai upheld the CIT(A)'s admission of the assessee's additional ground regarding non-taxability of the waiver of a working capital loan, rejecting the Revenue's objection that such claim was not made in the original or revised return. Relying on Supreme Court precedents, the tribunal confirmed that additional claims can be raised before the ITAT. The waiver amount, credited as income and offered to tax, was held not taxable under Section 41(1) as it was not a trading liability. Further, Section 28(iv) was deemed inapplicable since the waiver constituted a cash receipt, not a non-monetary business benefit. The decision aligned with the Bombay HC ruling in Essar Shipping Ltd., concluding the waiver amount could not be taxed under Section 28(iv). Grounds raised by the Revenue were dismissed. Case-Laws Income Tax Fri, 03 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=776236