2024 (7) TMI 902

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....R ANNAPURNA GUPTA, ACCOUNTANT MEMBER This appeal has been filed by the Department against the order of the ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, New Delhi dated 5.10.2023 under section 250 of the Income Tax Act, 1961 ("the Act" for short) for the assessment year 2010-11. 2. The grounds raised in the appeal are as under: 1. Whether the ld.CIT(A) has erred in....

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....the Revenue has come up in appeal before us. 4. We have gone through the orders of the authority below, and we find that there has been a complete misguided and misdirected approach by the Revenue authorities while dealing with this issue. This is evident from the fact that when the AO confronted the assessee with the taxability of waiver of the loan by its bank under OTS, the assessee explained ....

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....the addition made u/s 28(iv) of the Act. 5. Why these facts are important is for the reason that, both these sections are slightly overlapping in their operation - while section 41(1) deals with taxability of remission or cessation of the liability, under section 28(iv) of the Act perquisites received during the course of conducting business are treated as income . On the issue of waiver of loans....

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....that if the loan has been taken for trading purpose waiver of such loan would tantamount to cessation of liability ,liable to tax under section 41(1) of the Act. 6. In the present case the taxability of the loan waived has not been considered in terms of the provisions of section 41(1) of the Act by the authorities below, though surprisingly the assesses submission to the AO was solely in the con....