2021 (9) TMI 19

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....ying on the judgment of Hon'ble Supreme Court in case of Mahindra and Mahindra, 93 taxmann.com 32. 2. Facts in brief are that the assessee is a limited company engaged in manufacturing and trading of PVC Foam sheets. The assessee has e-filed return of income by declaring total loss of Rs. 2,72,39,776/- which was processed under section 143(1) of the Act. Thereafter, on the basis of information received from DIT(R), Delhi that no relief/concession was envisaged by the BIFR while considering sanctioned scheme under OTS. Therefore, after recording reasons, notice under section 148 was issued for reopening and reframing of the assessment under section 147 of the Act. 3. During the assessment, the ld. AO observed that as per one time s....

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....usiness profit, no relief or deduction is allowable, because assessee has no liability to pay back that receipt. He accordingly made addition of Rs. 2,47,88,187/- being waiver of portion of principal loan, and added to the total income of the assessee. Dissatisfied with the action of the AO, the assessee went in appeal before the first appellate authority. The ld. CIT(A) allowed the claim of the assessee by relying the decision of Hon'ble Supreme Court in the case of CIT Vs. Mahindra & Mahindra Ltd. 93 taxamnn.com 32 (SC), by holding that waiver of loan amount could not be brought to tax, as the same was on capital account and not in the nature of income. Aggrieved Revenue is in appeal before the Tribunal. 4. The ld. DR relied upon o....