9911796707
|
Home
Issues involved: Determination of whether an amount not allowed to be written off as bad debt could be claimed as a business loss.
Facts: The case involved an appeal for the assessment year 1984-85 where an amount of doubtful debts was assigned by Greaves International Ltd. to Greaves Cotton Ltd. The appellant claimed deduction for bad debts disallowed by authorities, later arguing for the amount as a trading loss before the Tribunal. Findings: The Tribunal rejected the claim, stating that the write-offs were not bad debts but a loss on sale of rights in debts/advances. The court held that the appellant failed to prove the amount represented a trading loss, as there was no evidence of lending money as part of their business. Precedents cited were distinguished based on the nature of the transactions and lack of factual basis in the present case. Judgment: The court dismissed the appeal, emphasizing the need for proper evidence to establish whether a loss is a trading loss or capital loss, ultimately finding no basis to support the appellant's claim.
|
