INCOME TAX ACT, 1961

Section 143(3)

Assessment - Scrutiny assessment - Claim of waiver of principal component of deposit and debentures -

Assessee was carrying on the business of accepting deposits from members and lending the same to other members. Returns were processed under section 143(1) and they were taken up for scrutiny. Thereafter, total income was determined at Nil, after setting-off of brought forward losses and brought forward depreciation, etc. However, AO considering the claim of waiver of principal component of deposit and debentures as taxable revenue receipt as against assessee's claim of principal part of deposit and debentures as capital receipt which were not liable to tax. CIT(A) and Tribunal dismissed appeal of assessee. Held: Income Tax Appeal in Manipal Sowshagya Nidhi Ltd. v. Asstt. CIT [Income Tax Appeal No.99 of 2009, dt. 10-12-2018] was disposed of by order of even date on the same ground. Hence, following the said judgment the substantial question of law was answered in favour of the assessee.

REFERRED : Manipal Sowshagya Nidhi Ltd. v. Asstt. CIT [Income Tax Appeal No.99 Of 2009, dt. 10-12-2018] and CIT & Ors. v. Manipal Finance Corporation Ltd. [ITA No. 794, 795 of 2008, dt. 7-10-2014] : 2017 TaxPub(DT) 4431 (Karn-HC)

FAVOUR : In assessee's favour

A.Y. :

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