CIT v. Softworks Computers (P.) Ltd.

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The Tax Publishers2013 TaxPub(DT) 1596 (Bom-HC) : (2013) 354 ITR 0016 Income Tax Act, 1961 --Business income--Profits chargeable to tax under section 41(1) Remission of liability--Assessee claimed that the waiver or remission of the liability of the loan was in the nature of the capital receipt and therefore, not taxable. However, assessing officer and Commissioner (Appeals) disallowed assessee's claim holding that it was revenue receipt liable to be taxed. *Held:* Was not justified, as loan taken was utilised for the purpose of acquiring office. Therefore, it was taken for acquisition of capital asset and not for the purpose of trading activity. Income Tax Act, 1961 Section 41(1) In The Bombay High Court J.P. Devadhar & M. S. Sanklecha, J.J. The CIT v. Softworks Computers Pvt. Ltd. Income Tax Appeal No.6777 of 2010 18 December, 2012 Appellant/Petitioner by : Suresh Kumar Respondent by : P.J. Pardiwala, Senior Advocate with Mr. Atul Jasani SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2013 TaxPub(DT) 1596 (Bom-HC) : (2013) 354 ITR 0016

Income Tax Act, 1961

--Business income--Profits chargeable to tax under section 41(1) Remission of liability--Assessee claimed that the waiver or remission of the liability of the loan was in the nature of the capital receipt and therefore, not taxable. However, assessing officer and Commissioner (Appeals) disallowed assessee's claim holding that it was revenue receipt liable to be taxed. Held: Was not justified, as loan taken was utilised for the purpose of acquiring office. Therefore, it was taken for acquisition of capital asset and not for the purpose of trading activity.

Income Tax Act, 1961 Section 41(1)

In The Bombay High Court

J.P. Devadhar & M. S. Sanklecha, J.J.

The CIT v. Softworks Computers Pvt. Ltd.

Income Tax Appeal No.6777 of 2010

18 December, 2012

Appellant/Petitioner by : Suresh Kumar

Respondent by : P.J. Pardiwala, Senior Advocate with Mr. Atul Jasani