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advances written off, Income Tax |
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advances written off |
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advances written off is an eligible expenditure as per IT Act? if it is eligible under which section? and give me the relevant case laws Posts / Replies Showing Replies 1 to 3 of 3 Records Page: 1
Please clarify the purpose for which the advances was given? There are different judgements dealing with various types of advances. Advance word is very broad in nature.
dear agarwal sir, advances given for purchase of cement which amounts to 89 lakhs, nown that company went to BIFR, so we want to write off such amount please refer regarding this and its case laws
If the advance for cement is in nature for the purchase of Factory Building or other fixed assets, then such advance would take the colors of Capital in nature and would not be allowed as deduction. However if the cement purchase was for trading purpose or the cement to be used for the repair, then such advance would take the colors of revenue in nature and would be allowed as deductible expenditure. Supreme Court in CIT v. Mysore Sugar Co. Ltd. [1962] 46 ITR 649 (SC)- Page: 1 Old Query - New Comments are closed. |
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