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2015 (9) TMI 1695 - ITAT BANGALOREDisallowance of bad debts write-off - Amount written off by the assessee is on advance given by it to one PIE Education P. Ltd. - HELD THAT:- When assessee itself had not charged any interest on the amount advanced, it cannot say that any income from such loans were taken into account for computing its total income. For the simple reason that assessee had never charged any interest on the loan to PIE Education P. Ltd, such loan cannot be treated as money lent by the assessee in the ordinary course of a business of money-lending. In our opinion, assessee is squarely hit by the limitation placed by section.36(2)(i) of the Act. Claim of the assessee also cannot be considered as a business loss, for the reason that assessee was not in the business of providing education and training. Even if we presume that assessee was carrying on a business of lending money, the amount written off here was not lent in the course of money lending business. Coming to the judgment of Hon’ble Apex Court in the case of T. R. F. Ltd [2010 (2) TMI 211 - SUPREME COURT], the question there was whether for a claim of bad debts, write- off in the books alone was sufficient - In the judgment of Amalgamations P. Ltd [1997 (4) TMI 8 - SUPREME COURT] question was whether loss incurred for providing bank guarantee for loans taken by a subsidiary could be allowed. Assessee here has nowhere stated that PIE Education P. Ltd is a subsidiary of the assessee company, nor was the write-off in relation to any bank guarantees. As held that solitary transaction by itself could not be considered as an impediment for construing the meaning of money lending business. As against this, assessee here had advanced the money to PIE Education P. Ltd without any agreement regarding interest and that too not as a part of its lending activity, if at all it had any. Lower authorities were justified in disallowing the sum - Ground.3 of the assessee is dismissed. Disallowance u/s.14A on account of assessee’s own submission - HELD THAT:- Sole grievance was that the disallowance u/s.14A of the Act made on account of assessee’s own submission, was considered by the AO as a disallowance made by the latter - As admitted addition we are of the opinion that assessee cannot have any grievance now. We do not find any reason to interfere in the order of lower authorities on this issue also. Ground.4 of assessee is dismissed.
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