1. The revenue has preferred this appeal challenging the order passed by the Income Tax Appellate Tribunal, Bangalore Bench-A, which has declined to interfere with the order passed by the Appellate Commissioner, who treated the waiver of the loan liability of the assessee as a capital receipt and not a revenue receipt, and consequently, there is no liability to pay tax under the Act. The assessee-company was engaged in the business of manufacture and sale of halogen lamps. It filed its return of income declaring a loss of Rs. 1,72,71,763 for the assessment year 2003-04. The case was taken up to scrutinize the assessment under section 143(3) of the income-tax Act (for short hereinafter referred to as the Act) for determining the loss at Rs. 1,72,71,763. Thereafter, an order came to be passed on 4-1-2008 for reopening the assessment. Notice was issued under section 148 of the Act. The reasons assigned for reopening was that the assessee had written back unsecured loan of Rs. 2,94,81,265 which had not been offered as income for the relevant assessment year. The amount written back is essentially an unsecured loan, which is in the nature of capital receipt resulting in liabilit