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TMI Blog2015 (10) TMI 2719X X X X Extracts X X X X X X X X Extracts X X X X ..... cter of current expenses.” Also in the case of I.B. M World Trade Corpn.(1988 (12) TMI 23 - BOMBAY High Court) that the moneys advanced by the assessee in pursuance of these agreements to the landlord for the purposes of and in connection with the acquisition of the premises on lease were for the purpose of business. Naturally, therefore, when such advances are lost to the assessee, the loss would be a business loss and not a capital loss - Decided against revenue - I.T.A. No.6862/Mum/2012 - - - Dated:- 21-10-2015 - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH, JUDICIAL MEMBER Appellant by: Shri Anilkumar Dhondial Respondent by: Shri J.D. Mistry O R D E R PER N.K. BILLAIYA, AM: This appeal b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of the Hon ble Jammu Kashmir High Court in the case of Chenab Foresh Co. Vs CIT 96 ITR 568 and also following the ratio laid down by Hon ble High Court of Bombay in the case CIT Vs Dempo Co. Ltd 206 ITR 291, the Ld. CIT(A) was convinced that the write off of deposits is a business loss and directed the AO to delete the addition. 5. Aggrieved by this, the Revenue is before us. 6. The Ld. Departmental Representative strongly supported the findings of the AO. 7. The Ld. Counsel for the assessee reiterated what has been stated before the lower authorities. The Ld. Counsel also relied upon the decision of the Hon ble High Court of Bombay in the case of I.B.M. World Trade Corpn. Vs CIT 186 ITR 412. 8. We have given a thoughtf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aracter of current expenses. 8.2. This observation of the Hon ble Supreme Court was considered by the Hon ble High Court of Bombay in the case of I.B. M World Trade Corpn. (supra). The relevant observation of the Hon ble High Court of Bombay in the case of I.B. M World Trade Corpn.(supra) read as under: As the acquisition of premises on lease would not ordinarily be in the capital filed, we have no hesitation in holding that the moneys advanced by the assessee in pursuance of these agreements to the landlord for the purposes of and in connection with the acquisition of the premises on lease were for the purpose of business. Naturally, therefore, when such advances are lost to the ssessee, the loss would be a business loss and not a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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