Legal Reference Library

CIT vs. Ramaniyam Homes P Ltd (Madras High Court) COURT: Madras High Court CORAM: T. Mathivanan J, V. Ramasubramanian J SECTION(S): 28(iv) GENRE: Domestic Tax CATCH WORDS: business income, capital vs. revenue receipt, OTSS, waiver of loan COUNSEL: Dr. Anitha Sumanth DATE: April 22, 2016 (Date of pronouncement) DATE: April 28, 2016 (Date of publication) AY: 2006-07 S. 28(iv): The waiver by the lender of even the principal amount of loan constitutes a "benefit" arising from business and is assessable to tax as income. Logitronics 333 ITR 386 (Del), Rollatainers 339 ITR 54 (Del), Mahindra & Mahindra 261 ITR 501 (Bom) and Iskraemeco Regent 196 TM 103 (Mad) not followed The High Court had to consider whether the amount representing the principal loan amount waived by the bank under the one time settlement scheme which the assessee received during the course of its business is exigible to tax. The department contended that the waiver of principal amount ...

Cited : 1)  Mathew Varghese  v.  M. Amritha Kumarr & Ors. ;  2014 (2) SCALE 331 2) C.A. No. 3865 of 2014 titled as  J. Rajiv Subramaniyan & Anr.  v.  M/s Pandiyas & Ors., Supreme Court 3)  General Manager. Sri Siddeshwara Cooperative bank Limited and Anr  v.  Ikbal & Ors.; (2013) 10 SCC 83 4)  State of Punjab  v.  Davinder Pal Singh Bhullar & Ors.; 2011 (14) SCC 770 5) P annalal Binjraj  v.  Union of India  and  P.D. Dinakaran (1)  v.  Judges Enquiry Committee 6)  Power Control Appliances  v.  Sumeet Machines (P) Ltd., Supreme Court 7)  P. John Chandy & Co. (P) Ltd. v. John P. Thomas 8) Dawsons Bank Ltd. v. Nippon Menkwa Kabushiki Kaisha 9) Basheshar Nath v. CIT, Mademsetty Satyanarayana v. G. Yelloji Rao 10) Associated Hotels of India Ltd. v. S.B. Sardar Ranjit Singh 11) Jaswantsingh Mathurasingh v. Ahmedabad Municipal C...