Treatment under income tax act

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 March 2014 sir/mam

one of my client company applied for scheme under bifr.i want to know the treatment of sacrifices made by the financial institutions under the income tax act,1961

Nikhil Kaushik

Nikhil Kaushik (Expert)
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02 March 2014 if the sacrifice is on a term loan, then there is no income tax impact. However, if the sacrifice on working capital loan is treated as business income.

please refer [Rollatainers ltd. V. CIT (2012) ( Delhi) and CIT vs Cochin Co. Pvt ltd (Kerala)].

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