Waiver of Income.

As per an agreement company 'X' is eligible to collect its Interest expenses from company Y. At the end of 8 years X has to sell its asset to Y. But the Company X has decided not to collect the interest amount from Y. X itself paying the Interest expense and charging it to their Profit & Loss. X is not even having an Internal Circular to do so, except some mails.

Is that waiver acceptable?

Please do suggest:)