Judgment :- (a) Formulate the substantial question of law stated therein. (b) Allow the appeal and set aside the order passed the order passed by the of the Income Tax Appellate Tribunal, as prayed for therein. 1. The revenue has come up in this appeal challenging the concurrent findings of the order passed by the Commissioner of Income Tax which has been affirmed by the Income Tax Appellate Tribunal, Bangalore in ITA. No. 852/Bang/2000 for the assessment year 1996-97 dated 12.1.2005 raising the following substantial questions of law. “Whether the Appellate Authorities were correct in holding that a sum of Rs. 10,55,461/-loan waived by M/s. Pharmacia Biotech and sum of Rs. 43,77,633/- share application money waived by M/s. UB Limited cannot be treated as income of the assessee during the current assessment year as held by the Assessing Officer?” 2. We have heard the learned counsel for the parties. 3. The facts leading to the filing of this appeal are as hereunder: The assessee-company is engaged in the business of marketing diagnostic equipment, lands etc. For the assessment year 1996-97 the assessee filed return of income declaring the net loss. The matter was taken up for scrutiny assessment. It was noticed that the assessee has received a loan of Rs. 10,55,461/- from M/s Pharmacia Biotech Asia Specific Limited and which amount was waived off by the company during the relevant assessment year. The Assessing Officer treated the aforesaid loan amount payable by the assessee as income of the assessee and this would become the income of the assessee during the current assessment year and the same should be brought to tax. Similarly a sum of Rs. 43,77,633/- share application money was payable to the UB Limited. During the current assessment year, the aforesaid amount was also waived off by the UB Limited. This amount was also brought to Tax by the Assessing officer during the relevant year. Accordingly, an order of assessment was passed on 26.2.1999. Aggrieved by the same the assessee filed un appeal before the Commissioner of Income Tax. 4. The Commissioner considering the fact that the loan payable by the assessee to its creditor it waived cannot be treated as income for the relevant assessment year. Accordingly, an order of assessment was passed on 26.2.1999. Aggrieved by the same the assessee filed un appeal before the Commissioner of Income Tax. 4. The Commissioner considering the fact that the loan payable by the assessee to its creditor it waived cannot be treated as income for the relevant assessment year. Similarly, the Commissioner also hold if the share application has been waived, the same also cannot be treated as income as long as the assessee does not claim it as an expenditure in the books of accounts. Accordingly, the appeal came to be allowed. Aggrieved by the same the revenue filed an appeal before the Tribunal, the Tribunal has dismissed the appeal. Being aggrieved by the concurrent findings, the present appeal is filed. 5. After hearing the counsel for the parties, we are of the view that the substantial questions of law raised by the revenue are to be answered against the revenue for the following reasons. 6. Admittedly, the assessee was liable to pay a sum of Rs. 10,55,461/-to M/s. Pharmacia Biotech Asia Specific Limited, but the creditor of the assessee has waived off that amount in the current assessment year. If the creditor has waived off the money payable by the assessee, the same cannot be treated as an income of the assessee during the relevant assessment year or any other assessment year since the assessee is not claiming as if the loan is repaid to its creditor. Similarly, if the share application money is waived off such waiver would ennure to the benefit of the assessee, but the same cannot be treated as an income of the assessee. Therefore, on facts both the questions are answered against the revenue. 7. Accordingly, the appeal is dismissed.