A. BACKGROUND FACTS & TAX LAW ON WAIVED DEBTS

[1] Normally, we would address the background facts separately before we delve into the laws surrounding the factual matrix. However, having heard the oral and written submissions by both parties, we find that the subject matter of this appeal is complex and overwhelming in concepts involving accounting, trading, and taxation (more so than it is a facts-laden case). Thus, we are of the view that it is appropriate for us to directly discuss the law and the technical concepts as and when they arise as we gradually open up the facts of the Appeal.

[2] The Appeal before us is an Appeal against the Learned High Court Judge's ("Learned Judge") decision in affirming the Special Commissioner of Income Tax's ("SCIT") decision that the loan debts which were waived