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TMI Blog2024 (2) TMI 1342X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 260A of the Income Tax Act, 1961 (the Act) impugning an order dated 4th September 2002 passed by the Income Tax Appellate Tribunal (ITAT). 2. Respondent (assessee) had filed its return of income on 3rd August 1998 for Assessment Year 1997-1998 declaring total loss of Rs. 57,43,200/-. Assessee's case was taken up for scrutiny assessment and an assessment order dated 21st September 2000 under S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th September 2002 in this appeal. The present appeal was admitted on 30th September 2004 and the following substantial question of law was framed : "Whether loans advanced to the Group Company utilised for purchase of properties and shares can be termed as proper debt for the purpose of claim as bad debt u/s. 36(1)(vii) read with Section 36(2) of the Income Tax Act?" 4. Respondent did not appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) ......................... (vii) Subject to provisions of sub-section (2), the amount of any bad debt or part thereof which is written off as irrecoverable in the account of the assessee for the previous year." The above clause, before its amendment w.e.f. 1.4.1989 reads as under : "36(1) - Subject to the provisions of sub-section (2) the amount of any debt or part thereof which is est ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de, it is to be allowed for the year in which it is written off in the books of accounts. 8. We also find that one of the reasons the Assessing Officer has disallowed the claim of assessee is that assessee is not a money lender and hence, it could not be said that the amount advanced had become bad. We agree with the ITAT that it is not necessary that every businessman should register himself und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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