03 December 2018
A company has taken CC from Bank and now in 2017 it has gone for One Time Settlement(OTS).The waiver amounts to Rs.4.00 crores. The company has brought forward Business loss amounting to Rs.7.00 crores. 1) The waiver is considered as Business income as per Section 41(1). Is it taxable in the F.Y.2017-18? 2) If Waiver treated as Business Income, Can the same be adjusted against brought forward business losses?
Please give some case laws relating to the above query if possible.
CAclubindia
