Urgent!!! capital receipt vs capital profit

Delhi High Court in the case of Logitronics P. Ltd. vs. CIT [2011] 333 ITR  386, 402 {Del}has held that the question  whether waiver of loan is income or not depends on whether loan was used for capital or revenue purposes. If the loan was taken for acquiring a capital asset, the waiver thereof would not amount to any income exigible to tax u/s 28(iv) or 41(1).

Mahindra and Mahindra Ltd. vs. CIT [(2003) 261 ITR 501 {Bom}, the assessee had taken a loan for acquiring capital assets. The High Court had held that the waiver of the principal amount of this loan by the lender was not taxable as business income u\s 28 [1][iv]

The Bombay High Court the case of Solid Containers Ltd. vs. Dy. CIT [2009] 308 ITR 417 has held that the loan waived pertained to the trading operations of the assessee. The High Court applying the above Supreme Court of T.V.S. Sunderam Iyengar and Sons Ltd held that  the benefit of  waiver of loan taken by the assessee for business purposes was taxable u\s 28 [1][iv].

thanq u very much..

if it is considered as capital receipt, can the company transfer the amount to capital reserve account?

if it is so , can it be utilised for paying dividends? since it is like realised profit.