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2012 (12) TMI 633 - ITAT CHENNAITrade advance written off - CIT(A) deleted the addition - Held that:- Trade advance in question was given during the course of business and the assessee has written-off the same in its books of account during the year. Since the assessee has filed evidence before the Revenue authorities to demonstrated the fact that these advances have, in fact, become bad,consequently, it was decided not to interfere with the findings of the Commissioner (Appeals) and hereby uphold the same - against revenue. As decided in CIT v. CIT v. WoodWard Governor India P. Ltd. [2009 (4) TMI 4 - SUPREME COURT] the expression “any expenditure” used in section 37 is to cover both “expenses incurred”as well as an amount,which is really a “loss”,even though such amount has not gone out from the pocket of the assessee the advance written off by the assessee as irrecoverable is allowable as business loss under section 28 of the Act - Order of the Commissioner of Income Tax (Appeals)in allowing the claim of the assessee is sustained - against revenue
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