Addition made on account of bad debt - It is nothing but the ...

Assessee misuses Section 36(1)(vii) for bad debt; partner liable for loss from unauthorized land purchase.

March 11, 2016

Case Laws Income Tax AT

Addition made on account of bad debt - It is nothing but the assessee is trying to enjoy the benefit of section 36(1)(vii) of the Act through back door, which is not permissible under law. As per agreement for sale, it is only a money diversion from the accounts of MAX VALUE HOUSING to purchase the land by the individual Mr. M. Khadeer Ahmed and not for the assessee firm. Therefore, any loss incurred by the individual partner, he has to bear the same in view of the terms of partnership deed, so agreed upon by the partners of firm while executing the partnership deed - AT

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Addition made on account of bad debt - It is nothing but the ...

Assessee misuses Section 36(1)(vii) for bad debt; partner liable for loss from unauthorized land purchase.

March 11, 2016

Case Laws Income Tax AT

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