1. This appeal by the revenue challenges the order dated 18th October, 2012 of the Income Tax Appellate Tribunal, Bench at Mumbai in Income Tax Appeal No.4263 of 2011. The assessment year is 2007-08.

2. The revenue had filed an appeal in the tribunal challenging the order dated 25th February, 2011 of the Commissioner of Income Tax (Appeals) Mumbai.

3. The grounds of appeal as raised before the tribunal and pressed before us relate to deletion of addition made on account of loan waived by the banks in favour of the respondent assessee in one time settlement amounting to Rs.4,40,22,653/-.

4. The argument was that the Commissioner erred in not appreciating the fact that the principal amounts of loans retained by the assessee on account of one time settlement, constituted its income as per section 28(iv) of the Income Tax Act, 1961 though not under Section 41(1) of the said Act.

5. Before us, however, Mr.Pinto submits that the appeal raises substantial questions of law. They are formulated by Mr.Pinto as under :

Whether in law and on the facts of the instant case, was the Tribunal right in holding that the waiver of the loan was not taxable, when Section 28(iv) seeks to bring to