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2014 (6) TMI 468 - ITAT DELHIDeletion of disallowance of bad debts/ advances written off – Allowability to deduct the losses and debts of subsidiary company – Separate legal entity – Held that:- The fact about FBII having become financially unviable due to exigencies mentioned have not been disputed by the AO - The fact that assessee advanced amount in its books of account which has been accepted by the department and the amounts have been actually written off as bad debt are clearly allowable u/s 36(1)(vii) - in any case it becomes a business loss of the assessee – thus, there was no infirmity in the order of CIT(A) – Decided against Revenue. Addition on discontinued operation - Pharma division sold under slump sale – Held that:- The facts have not been disputed by the AO - The liabilities qua the sundry creditors have been disallowed on a misconception that they were provided in the business transfer agreement whereas assessee has demonstrated that it is part of the business transfer agreement which has been properly appreciated by the CIT(A) - The issue about the amounts having been transferred from the assessee’s pharma division carried out in the name of Vita Life (pharma division) and subsequent payments are also demonstrated in the books of account which have been duly verified - the relief has been granted after proper verification of the facts, there was no reason to interfere in the finding of CIT(A) – Decided against Revenue.
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