|The Tax Publishers2020 TaxPub(DT) 5457 (Mad-HC) : (2021) 277 TAXMAN 0644
INCOME TAX ACT, 1961
Where AO without verification of entire particulars, including books of account for the concerned year and also of the previous years held that waiver of loan by the bank was based on receipt and income was taxable under sections 28(iv) and 41(1), issue was remanded to AO with direction to assessee to furnish all the particulars.
Business income under section 41(1) - Remission or cessation of trading liability - Loan waived of by bank treated as taxable in absence of particulars for preceding years -
Assessee had written off bad debts, comprising principal and interest under compromise settlement with ICICI Bank. AO in the absence of particulars sought for substantiating records and books of account with regard to previous assessment orders for the previous years, held that waiver of loan by the bank was based on receipt and income was taxable under sections 28(iv) and 41(i). Held: It was the duty of assessee to furnish all the particulars including accounts of preceding years. Unless entire books of account of assessee were submitted it was difficult to arrive at a decision and therefore, matter was set aside to AO with direction to assessee to submit entire particulars including books of account for the concerned year and also of the previous years.
FAVOUR : Matter remanded.
A.Y. : 2004-05
SUBSCRIBE FOR FULL CONTENT