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TMI Blog2019 (1) TMI 1762X X X X Extracts X X X X X X X X Extracts X X X X ..... e disallowance of Bad Debts written off of Rs. 48,00,000/- on the ground that allowability of Bad Debts u/s 36(1)(vii) r.w.s. 36(2) is limited to the head of income from business and profession even though such amount earlier taxed as a capital gain. 3. To adjudicate on this appeal, only a few material facts need to be taken note of. The assessee before us is engaged in the business of manufacturing of dye intermediates and fine chemicals. During the course of the assessment proceedings, the Assessing Officer noted that the assessee has claimed bad debts of Rs. 48,00,000/-. It was further found that the bad debts is claimed in respect of claim of certain shares through M/s. Pravin Ratilal Shares & Stock Brokers Pvt Ltd as the broker had no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the P & L A/c. The A.O. has rightly enquired from the assessee to explain the details relating to the said bad debt with documents reflecting that the same was taken into account while computing the income to that particular year. The A.O. has further gone into details of computation of income from A.Y 1999-2000 till A.Y.2001-02 i.e. the period in which the appellant has claimed to have debited the account of Pravin Ratilal Shares and Stock Brokers Ltd. by crediting the sale of shares. According to the appellant, after deducting the cost of investment in respect of shares sold the profit has been credited to P&L A/c. Therefore, the amount of claim of bad debt has been credited to the P&L A/c of the respective year. The A.O. on analysing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in computing income of earlier yearn and there is no mention of head of income in which bad debt written off is to be considered as income. I disagree with the contention of the appellant. The bad debt can be written off only in respect of a debt relating to the computation of income under the head of Income from business and profession. Capital loss is not deductable as business loss. It has been held in the case of Bluechip Business Centre Pvt Ltd vs. ITO (2014) 149 ITD 354 (Mumbai) Tribunal that capital loss cannot be claimed as deductible as business loss. Accordingly, the addition made on disallowance of bad debt written off of &s. 48 lacs is hereby confirmed and the ground off appeal is dismissed." 5. The assessee is not satisfied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bts, the same should be considered by the Assessing Officer for being allowed in the capital filed. The Assessing Officer having rejected the case of the assessee for the loss in the revenue field, it is only corollary thereto that as long as it is a genuine loss, as undisputed facts of the present case clearly indicate, the loss is to be treated as loss in the capital field, and the matter is to be examined further from that angle. However, this aspect of the matter is not at all examined by the Assessing Officer. Therefore, we remit this issue to the Assessing Officer for examination of the alternative claim of the assessee that the loss be allowed as capital loss. To this extend, the plea of the learned Counsel is accepted. 9. In the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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