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Sec. 28(iv) of the Income-tax Act, 1961 - Business income - There is a fundamental difference between "loan" and "subsidy" and the two concepts cannot be equated. While "loan" is a borrowing of money required to the repaid back with interest; "subsidy" is not required to be repaid back being a grant. Such grant is given as part of a public policy by the state in furtherance of public interest. Therefore, even if a "loan" is written off or waived, which can be for various reasons, it cannot partake the character of a "subsidy". Thus, waiver of loan cannot be brought to tax under section 28(iv) of the Act. - ESSAR SHIPPING LIMITED V/s CIT -  426 ITR 220 (BOM)