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2012 (6) TMI 710 - ITAT, CHENNAINon-recovery of the advance made for the development of the product - bad debts or capital loss - assessee engaged in the business of software verification, validation and testing for various software developers - Held that:- CIT(A) has taken into consideration the terms and conditions of the agreement to ascertain the nature of amount forwarded by the assessee to M/s.SATPL and has rightly held that amount was paid by the assessee for furthering its business interest and not for the purpose of investment. Therefore, amount advanced, which was subsequently not recovered is a business loss and thus allowable as revenue expenditure - Decided in favor of assessee.
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