if Bank waive interest of the Borrower (Assessee) due to bad financial position of the Borrower, Can A.O treat such relief as taxable income in the hands of an assessee???
If the Answer is NO, then
Let me know that Whether Bank can Claim such waiver as a deductible loss??
I think AO cannot treat it as taxable income, but can disallow intt exp.
you are not paying any interest to the bank so it is not taxable income in your hands if you are debited the same in earliere years then it is taxable u/s 41
Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
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