2011 (9) TMI 115 - HC - Income Tax

Bad debts - inter corporate deposits - Held that - the assessee was engaged in the business of advancing loans and interest received from the inter corporate deposits have been assessed as business income in the past. Since the said inter corporate deposits had become bad, the assessee in the assessment year in question had written off that amount. Since the interest income from the inter corporate deposits have been assessed as business income, in the facts of the present case allowing the claim of the assessee in writing off the inter corporate deposits cannot be faulted

Summary

The Bombay High Court dismissed the appeal regarding the claim of the assessee under "inter-corporate deposits" written off, as the Income Tax Appellate Tribunal found that the deposits had become bad and were previously assessed as business income.