2008 (6) TMI 206

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..... peal is filed by the Revenue against the order of the Income-tax Appellate Tribunal, Madras "B" Bench, dated September 21, 2007, in I. T. A. No. 958/Mds/2004. The relevant assessment year is 2000-01. The substantial question of law formulated in this appeal is as follows: "Whether, on the facts and circumstances of the case, the Tribunal is right in allowing the deduction under section 36(1)(vii) .....

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..... se Finance Services P. Ltd. was not lent in the ordinary course of money-lending business disallowed the claim under section 36(1)(vii) as the assessee failed to satisfy the conditions laid down in section 36(2). Aggrieved by the order of the Assessing Officer the assessee filed an appeal before the Commissioner of Income-tax (Appeals) who allowed the appeal in favour of the assessee holding that .....

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..... M/s. Seahorse Financial Services P. Ltd. cannot be regarded as an advance which is sticking in nature cannot be regarded as bad debts under the provisions of section 36(1)(vii) of the Act. 4. We heard the argument of learned counsel for the Revenue and perused the materials on record. 5. The Commissioner of Income-tax (Appeals) as well as the highest fact finding authority-Tribunal have categor .....

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