been clearly
determined whether loan was taken as term loan or as
cash credit loan. Therefore, Ld. CIT(A) should re-
examine the issue ... loan of ₹
1,40,00,000/- between 'term loan' and 'cash credit loan'. The Ld. CIT(A)
accordingly calculated the waiver
every stage
that since the issue of taxability of waiver loan was too complex and could
not yet be settled at the initial stage ... loan waiver was taken by the assessee
group. In the said advice it is opined that the Waiver of Loan was not taxable
this regard, it is pertinent to note that
taxability of loan waiver has been a matter of debate
having been considered ... loan being waived off by the lender on account of one
time settlement of loan cannot be termed as revenue
receipt. Therefore, on such waiver
loans by the banks as capital
15
Crest Paper Mills Ltd
receipt and credited to reserves and surplus account. The AO has added loan
waiver ... loan waiver scheme. It is the contention
of the assessee that the assessee does not get any benefit on account of
waiver of loan
that the waiver of the interest by
the ICICI was benefitted by the assessee and so, taxable and waiver of the loan
can be construed ... waiver. The
waiver may be a partly waiver i.e., waiver of part of the principal
or interest repayable, or a complete waiver of both
that the
purpose of loan which has been waived, i.e., whether
loan was a term loan or working capital loan would
determine ... waiver. The waiver may be
a partly waiver i.e. waiver of part of the
principal or interest repayable, or a complete
waiver of both
called agricultural loans forms only less than 10% of the loans advanced by the cooperative banks, while 90% of the loans are availed by farmers ... growing farm prosperity and a ten-fold increase in farming loans.
The farm loan waiver gives the impression that the farmers are habitual defaulters. Only
Batliboi Ltd, Mumbai vs Dcit Cir 2(1), Mumbai on 17 February, 2021
IN THE
Government of 'Plan
Government Loans' , as these loans were granted to meet capital expenditure, and
hence its waiver as per AO will ... purpose for
which the loan was taken.' If the loan had been taken for acquiring the capital asset,
waiver thereof would not amount
that in case of
loan waiver, since benefit is received in cash or in the shape of
money, therefore the provisions of section ... waiver. The waiver may be a partly
waiver ie., waiver of part of the principal or interest repayable, or
a complete waiver of both
