2002 (1) TMI 249 - AT - Income Tax

Summary

The Revenue appealed against the deletion of an addition of Rs. 1,07,469 made by the AO on account of bad debt for asst. yr. 1993-94. The CIT(A) allowed the deduction as a business loss under s. 28(1) of the Act, citing relevant court decisions. The ITAT upheld the CIT(A)'s decision, stating that the non-recovery of advances represents a loss in business transactions, and dismissed the Revenue's appeal.