2019 (2) TMI 730

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..... f remand, the Tribunal examined the material on record and in particular Memorandum and Articles of Association of the assessee company to come to the conclusion that the said Articles of Association permitted the assessee company to engage in activity of providing corporate guarantees in favour of other persons and entities. It was pursuant to this Article of Association that the assessee had .....

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..... Tribunal for short) raising following question for our consideration : (i) Whether on the facts and in the circumstances of the caseand in law, the Tribunal is justified in holding that the assessee has incurred business loss on account of guarantee extended inthe ordinary course of business? 2. The respondent assessee is a limited company, filed its return of income for Assessment Year .....

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..... tee for credit facilities sanctioned by Vysya Bank to one Geekay Exim (India) Pvt. Ltd. Ors. In the process, the assessee had incurred loss. The assessee had also taken reasonable steps for making recoveries by filing civil suits. Thus, on facts, the Tribunal hold in favour of the assessee on both counts namely; that the loss was genuine and that it arose out of the assessee's normal business .....

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