2013 (1) TMI 89

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Respondent Rep. by : Mr. P.J.Pardiwala, Senior Advocate with Mr. Atul Jasani JUDGEMENT 1. This appeal under Section 260A of the Income Tax Act, 1961 (the Act) by the revenue against the order dated 05.10.2007 passed by the Income Tax Appellate Tribunal (the Tribunal) for the Assessment Year 2001-02. The appellant seeks to raise the following reframed question of law for consideration of th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... in January, 2001 Amadeus Global Travel steps into the shoes of Speedwing British Airways and assumed its rights and liabilities. Consequent to the above, on 01.03.2001 a new agreement was signed between respondent-assessee and Amadeus Global Travel interalia releasing respondent-assessee from repayment of the advance of pound 1 lac. 3. In view of the above, in its return of income for assessme....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....al, the Tribunal by its order dated 05.10.2007 allowed the appeal of the respondent-assessee. The Tribunal held that the amount of Rs.70.12 lacs cannot be subjected to the tax as the same was in the nature of the capital receipt. 6. Mr. Suresh Kumar, Advocate for the Revenue, in support of the appeal submits that in view of the decision of this court in the matter of Solid Container Ltd. v. Dy.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e by holding that in that case the loan was given for purchase of capital assets unlike in the case of Solid Container Ltd (Supra) where waiver was of a loan taken for trading activity and thus considered to be of a revenue nature. In the present case the amount which was advanced as a loan to the respondent-assessee was for the purposes of relocating its office premises. The loan taken was utilis....