1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Loan waivers – another controversy

ByCA Gopal Nathani

Sep 5, 2023

Pune bench in (2023] 106 ITR (Trib) 342 (ITAT[Pune) in a transaction of negotiated settlement of borrowing in the case of real estate business held that the surplus earned on reduction in liability is not chargeable to tax for the following two reasons:

That the assessee here is not in the business of lending and borrowing but only real estate ;
That the income is not received in the regular course of business of real estate.

This decision raises a controversy as it is settled law that waiver of principal amount of loan amounts to cessation of liability other than trading liability qua Mahindra case. It therefore matters little on what type of business the assessee is into.