2014 (5) TMI 1168

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....ssessing Officer in making an addition of Rs. 1,27,53,855/- on account of write off of the principal portion of cash credit loan waived by Banks. The appellant prays that: 1. Personal hearing may be granted 2. Demand of disputed demand may be stayed till hearing and disposal of appeal on merits 3. Any other relief Your Honors may deem fit 4. The appellant craves leave to addition, alter, amend or delete any of the above ground of appeal. 3. The assessee is a Private Company, engaged in the business of seed production and processing activities. In assessee's appeal, the only issue is with regard to addition of  1,27,53,855/- being cash credit loan waived by the bank. A similar issue arose ITA No....

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....se for which the said loan was taken. If the loan was taken for acquiring the capital asset, waiver thereof would not amount to any income exigible to tax. On the other hand, if this loan was for trading purpose and was treated as such from the very beginning in the books of account, as per T.V. Sundaram Iyengar and Sons Ltd. [1996] 222 ITR 344 (SC), the waiver thereof may result in the income more so when it was transferred to the profit and loss account". In our opinion, the Ld. CIT(A) has rightly confirmed the addition made by the Assessing Officer to the extent of waiver to the cash credit loan. We do not find any merit in the appeal filed by the assessee. Accordingly, the ground taken by the assessee is dismissed." 3.1 Nothing co....

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....TA No.367/PN/2012 & another in assessee's own case for A.Y. 2008-09, wherein, the Tribunal on this issue has held as under: "12. We have heard the parties and also perused the reasons given by the Ld. CIT(A). The only reservation of the Assessing Officer was in respect of the "form" in which the Prescribed Authority has given the recognition which in this case is Secretary, Department of Scientific & Industrial Research, Government of India. The assessee filed the copy of the approval received from the competent authority. It is true that it is not in clear terms in Form No. 3CM which has been prescribed under the Income-tax Rule, 1962. We concur with the finding of the Ld. CIT(A) that if the approval is not in prescribed Form No. 3CM is....

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....aid amount pertains to the term loan. In this respect we may like to referred to the decision of the Hon'ble High Court of Bombay in the case of CIT-3, Mumbai Vs. M/s. Xylon Holdings Pvt. Ltd., Income Tax Appeal No. 3704 of 2010 judgment dated 13-09-2012. The Hon'ble High Court has considered all the relevant decisions on this issue and held as under: "8) We have considered the submissions. The issue arising in this case stand covered by the decision of this Court in the matter of Mahindra & Mahindra (supra).The decision of this court in the matter of Solid Containers (supra) is on completely different facts and inapplicable to this case. In the matter of Solid Containers (supra) the assessee therein had taken a loan for bu....