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| The Tax Publishers2020 TaxPub(DT) 1725 (Bom-HC) : (2020) 426 ITR 0220 : (2020) 317 CTR 0025 : (2020) 273 TAXMAN 0049 INCOME TAX ACT, 1961
Section 28(iv)
Amount of Rs. 57,74,064.00 was received as cash receipt due to waiver of loan. Therefore section 28(iv) was not satisfied in as much as prime condition of section 28(iv) that any benefit or perquisite arising from business or profession would be in the form of benefit or perquisite other than in the shape of money was absent. 'Loan' is written off or waived, which can be for various reasons, it cannot partake the character of a 'subsidy'.Therefore, amount involved could not be taxed under section 28(iv) in no circumstances.
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Business income under section 28(iv) - Taxbility - Cash receipt due to waiver of loan by State Government -
Question arose for consideration was whether cash receipt due to waiver of loan by State Government could not be taxed under section 28(iv). Held: Amount of Rs. 57,74,064.00 was received as cash receipt due to waiver of loan. Therefore section 28(iv) was not satisfied in as much as prime condition of section 28(iv) that any benefit or perquisite arising from business or profession would be in the form of benefit or perquisite other than in the shape of money was absent. 'Loan' is written off or waived, which can be for various reasons, it cannot partake the character of a 'subsidy'.Therefore, amount involved could be taxed under section 28(iv) in no circumstances.
REFERRED :
FAVOUR : in assessee's favour
A.Y. :
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