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2013 (3) TMI 119 - ITAT MUMBAIClaim of bad debt - provisions of Section 36(1)(vii) r.w.s. 36(2) - The Assessing Officer was of the opinion that these amounts did not pertain to revenue a/c and was more than 5 years old and hence not allowable as business expenses - held that:- matter remanded back for verification of submissions made by the assessee. Advances written off - Bad debts - held that:- Since Perfect Engineering Associates is a sister concern, the need for claiming it as a loss has not been properly explained. Even though it was stated that the loss was crystallized during the year as it was written off during the year, the assessee could not justify how the loss was allowable for the purpose of business. Unless loss arose in the course of business, the same cannot be allowed under section 28. Prima facie it is clear to us that the amount is not allowable as loss. - however matter remanded back for verification.
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