Loan Waiver: Taxable if Used for Business; Not Taxable if Used for Capital Assets Acquisition.

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Full Text of the Document

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....Addition towards loans waived off - If on an enquiry and verification, it transpires that the assessee had utilized the loan for the purpose of its business activity or trading activity, the amount of loan to the extent it has been waived by the Directors/shareholders shall be deemed to be income chargeable to tax - if utilized for purpose of acquiring any capital asset then on its waiver is not taxable....