2021 (9) TMI 19

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.... Vice President Present appeal is directed at the instance of the Revenue against order of the ld. CIT(A)-2, Ahmedabad dated 20.11.2018 for the Asstt. Year 2010-11, vide which the Revenue has challenged deletion of addition of principal part of loan waived by the bank amounting to Rs. 2,47,88,187/- by relying on the judgment of Hon'ble Supreme Court in case of Mahindra and Mahindra, 93 taxman....

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....f Rs. 2,47,88,187 in the form of wavier towards principal portion of loan as per the order of the BIFR. However, no concession or relief was allowed by the BIFR on the receipt of Rs. 2,47,88,187/- being waiver of principal portion of the loan. It was further observed by the AO that the assessee shown the amount of Rs. 2,47,88,187/- as income from other sources and credited the same to the profit &....

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....he amount in the profit & Loss account, and the amount of waiver principal amount has not been spent wholly and exclusively for the purposes of earning business 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 asse....

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....unt of one time settlement. The assessee had outstanding loan liability of Rs. 6,88,90,057/- with the IDBI Bank, which was settled under OTS at Rs. 441 lakhs, and the balance amount of Rs. 2,47,88,187/- representing principal portion of the loan waived by the Bank has been shown as income. The assessee credited the sum as income in the profit & loss account and shown it in the return of income, at....