Writing off unsecured loans taxable?

If unsecured loans received in a loss making company (which is not capable of repayment anyway) is written off as no longer repayable, will the written off amount be taxable under income tax or will it be a capital item and not taxable? Any case law available?

Thanks for reply. As u say it is taxable if it s unilateral write off. What if writing off is done with mutual agreement of lender and loanee under an agreement between them? still it wil be taxable i hands of loanee?