Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (2) TMI 1340 - ITAT DELHIDisallowance of advance written off - CIT-A deleted the addition - Held that:- The conditions precedent for claiming the bad debt has laid down in S.36(2) read with S.36(1)(vii) is not satisfied. The said claim cannot be allowed as bad debt. In the balance sheet the amount appearing as advance to others for land under ‘loans and advances’, in Schedule 5 is still showing outstanding in the year, and, therefore, this amount appears to be different, hence it is not a case of bad debts. As the said amount was not being recovered and has been claimed as loss by the assessee in this year, i.e. when sale of land was made, then the same needs to be allowed as business loss because, it was incidental and linked to the purchase of stock-in-trade and was taken as part of the cost of the land in this year while determining the business income from the sale of land in this year - Decided against revenue
|