HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 285/2018 Pr. Commissioner Of Income Tax, Jaipur-II, Jaipur. ----Appellant Versus M/s Modern Threads (India) Ltd., A-4, Vijay Path, Tilak Nagar, Jaipur. Pan- AABCM 1850 ----Respondent Connected With D.B. Income Tax Appeal No. 266/2018 Modern Syntex (India) Limited, A-4, Vijay Path, Tilak Nagar, Jaipur ----Appellant Versus Assistant Commissioner Of Income Tax, Circle-6, Jaipur ----Respondent D.B. Income Tax Appeal No. 267/2018 Modern Syntex (India) Limited, A-4, Vijay Path, Tilak Nagar, Jaipur. ----Appellant Versus Assistant Commissioner Of Income Tax, Circle-6, Jaipur. ----Respondent D.B. Income Tax Appeal No. 270/2018 Pr. Commissioner Of Income Tax, Jaipur-Ii, Jaipur. ----Appellant Versus M/s Modern Denim Ltd., A-4, Vijay Path, Tilak Nagar, Jaipur (Rajasthan). ----Respondent D.B. Income Tax Appeal No. 286/2018 Pr. Commissioner Of Income Tax, Jaipur-II, Jaipur. ----Appellant Versus (Downloaded on 17/10/2019 at 10:44:45 AM) (2 of 4) [ITA-285/2018] M/s Modern Denim Ltd., A-4, Vijay Path, Tilak Nagar, Jaipur (Rajasthan). ----Respondent D.B. Income Tax Appeal No. 295/2018 Pr. Commissioner Of Income Tax, Jaipur - II Jaipur ----Appellant Versus M/s Modern Denim Ltd., A-4 Vijay Path Tilak Nagar Jaipur (Rajasthan) ----Respondent For Appellant(s) : Shri Prateek Kedavat on behalf of Shri R.B. Mathur for Revenue For Respondent(s) : Shri Sunil Nath for assessee HON'BLE ACTING CHIEF JUSTICE HON'BLE MR. JUSTICE NARENDRA SINGH DHADDHA Judgment 04/10/2019 (PER HON BLE MOHAMMAD RAFIQ, J.) appeal nos.270/18, 285/18, 286/18 and 295/18 have been filed by revenue against judgement of Income Tax Appellate Tribunal, whereby Tribunal remitted issue to record of Assessing Officer for limited purpose of verification of fact as to nature of loan taken by assessee, which was waived off by bank/financial institutions under one time settlement and written back by assessee during assessment year. appeal nos.266/18 and 267/18 have been filed by assessee against judgement of Tribunal, which remitted matter back to CIT(A) by relying on certain judgements, whereas CIT(A) on consideration of judgement of this Court in (Downloaded on 17/10/2019 at 10:44:45 AM) (3 of 4) [ITA-285/2018] own case of assesee dated 26.4.2017 deleted addition made by Assessing Officer treating remission of liability on account of waiver from bank/financial institutions and adding same back to total income of assessee. Learned counsel for parties are ad idem that substantial questions of law involved in this matter are squarely covered by judgement of this Court in Modern Demin Ltd. vs. Assistant Commissioner of I.T., Jaipur, D.B. Income Tax Appeal No.145/2010 and other 4 connected matters dated 26.4.2017 where substantial question of law was whether remission of principal amount of loan obtained from financial institutions and banks constitutes benefit or pre-requisite arising from business and would fall within ambit of Section 28(iv) of Act. This Court in aforesaid judgement while allowing appeals filed by assessee reversed judgement of Income Tax Appellate Tribunal and restored view taken by CIT(A) following judgement of Bombay High Court in Mahindra and Mahindra Ltd. vs. Commissioner of Income Tax and Commissioner of Income Tax Vs. Mahindra and Mahindra Ltd.- (2003) 261 ITR 501 (Bom), which held that income which can be taxed under Section 28(iv) must not only be referable to benefit or perquisite, but it must be arising from business and that Section 28(iv) does not apply to benefits in cash or money. It is also not disputed that judgement of Bombay High Court was upheld by Supreme Court by dismissing Civil Appeal No.6949-6950 of 2004, Commissioner vs. Mahindra and Mahindra Ltd. through M.D. and other connected appeals by judgement dated 24.4.2018. Even SLPs filed against judgement of this Court in M/s. Modern Threads (I) Ltd., supra (Downloaded on 17/10/2019 at 10:44:45 AM) (4 of 4) [ITA-285/2018] were also disposed of in view of judgement of Mahindra and Mahindra Ltd., supra dated 24.4.2018. In view of above, while appeal nos. 266/18 and 267/18 preferred by assessee are allowed, appeal nos.270/18, 285/18, 286/18 and 295/18 filed by revenue are dismissed. Office to place copy of this order in each connected matter. (NARENDRA SINGH DHADDHA),J (MOHAMMAD RAFIQ),Acting CJ RAVI SHARMA /40-45 (Downloaded on 17/10/2019 at 10:44:45 AM) Powered by TCPDF (www.tcpdf.org) Pr. Commissioner of Income-tax, Jaipur-II, Jaipur v. Modern Threads (India) Ltd