2014 (11) TMI 693

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.... JUDGMENT This Appeal by the Revenue is challenging the order passed by the Income Tax Appellate Tribunal dated 24th February, 2012 in Income Tax Appeal No.6494/Mum/2008, that is for assessment year 2004-05. 2. On 8th October, 2014, we had granted time to Mr. Suresh Kumar to enable him to obtain the details of certain proceedings and in relation to which similar question is stated to have b....

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.... there are other provisions under which the benefit or income arising out of such waiver could have been dealt with. Therefore, the Appeal deserves admission. 5. We are unable to agree. The Assessing Officer's order dated 29th December, 2006 in para 3.3 records that waiver of term loan is not in the present case a trading liability, expenditure or loss as envisaged in section 41(1) of the Incom....

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....rticularly because the nature of the understanding and settlement reveals that the waiver resulted in an income to the Assessee. However, we do not find any reference being made to any particular provision of the Income Tax Act, 1961. The argument is restricted to applicability of this provision as is apparent from a reading of paras 7 to 10 of the order of the Tribunal. Mr. Suresh Kumar tried his....

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....owed for business purpose and was thus, a trading liability. That was subject matter of the consent terms between the Assessee and its creditor. The terms resulted in the Assessee being relieved from the obligation to pay the money which was admittedly due and payable and as a trading liability. That is how he wrote back or had written off the balance. That was taken as a credit balance in his boo....