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2019 (1) TMI 1762 - ITAT AHMEDABADDisallowance of Bad Debts written off - allowability of Bad Debts u/s 36(1)(vii) r.w.s. 36(2) - Whether limited to the head of income from business and profession even though such amount earlier taxed as a capital gain? - HELD THAT:- Entries being routed through P&L account does not entitle to be claimed as a bad debts or business loss for the simple reason that irrespective of whether these entries in the revenue field or capital field in terms of requirements of the Companies Act, it is to be routed through P&L account nevertheless. It is only elementary that what can be allowed as bad debts or business loss is only put in the revenue filed in connection with the business operation. Substance in the actions of the authorities below and concur with the views so taken by the authorities below that the loss in question cannot be allowed as a bad debts or business loss. Having said that, however, we see merits in the plea of the learned counsel that once it is not in dispute that loss has indeed incurred even if it is not in the revenue field or bad debts, the same should be considered by the AO for being allowed in the capital filed. AO having rejected the case of the assessee for the loss in the revenue field, it is only corollary thereto that as long as it is a genuine loss, as undisputed facts of the present case clearly indicate, the loss is to be treated as loss in the capital field, and the matter is to be examined further from that angle - this aspect of the matter is not at all examined by the Assessing Officer - we remit this issue to the AO for examination of the alternative claim of the assessee that the loss be allowed as capital loss - Assessee's appeal is allowed for statistical purposes
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