2016 (4) TMI 131

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....(Judgment of the Court was delivered by V. Ramasubramanian, J) This Tax Case Appeal filed by the Revenue, was admitted on 11.07.2007 on the following questions of law:- "[1] Whether in the facts and circumstances of the case, the Tribunal was right in holding that the amount of loan waived does not constitute the income of the assessee in the context of Section 28[iv] of the Act? [2] Whet....

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....nt that he advanced to the assessee Company in return for a promise that no liability arising out of non-fulfillment of export obligations should be fastened on him. 4. Considering the said term contained in the agreement to be a quid pro quo, the Assessing Officer treated the loan amount as revenue income for the company. The same was confirmed by the Commissioner of Income Tax [Appeals] ; but....

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....ourse of carrying on his business. Although it was treated as deposit and was of capital nature at the point of time it was received, by influx of time the money has become the assessee's own money. What remains after adjustment of the deposits has not been claimed by the customers. The claims of the customers have become barred by limitation. The assessee itself has treated the money as its o....