Itta/179/2014 Of The Commissioner Of Income Tax-I v. Continetal Coffee Ltd

IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) PRESENT THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. NO.179 OF 2014 DATED:4.4.2014 Between: The Commissioner of Income Tax-IHyderabad … Appellant And M/s. Continental Coffee Ltd.,7-1-24/2/D, Greendale, Ameerpet,Hyderabad … Respondent THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. NO.179 OF 2014 JUDGMENT:(per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) We have heard Mr. J.V. Prasad, learned counsel for theappellant, and gone through the impugned judgment and order of thelearned Tribunal dt.11.9.2009. The present appeal relates to only onequestion which is set out hereunder: “Whether in the facts and in the circumstances of the case, theTribunal is correct in law in deleting the addition of loan amount of Rs.35 lacswhich was waived by the IDBI in favour of the assessee? The learned Tribunal has, on fact and on law, found correctly thatno income has accrued in the hands of the assessee. Waiver of anyamount which was payable by the assessee to the bank cannot besaid to be any revenue receipt in any sense. The money was with thehands of the assessee and it amounts to capital, and not receipt at all. When saving by virtue of a benefit derived on account of waiver cannotbe said to be income in any sense, hence it is not taxable. The appeal is accordingly dismissed. There will be no order asto costs. ________________________ K.J. SENGUPTA, CJ _______________________ SANJAY KUMAR, J