TMI Blog2014 (5) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... sed upon treating the income as business income as is evident from the specific reference to section 28 - Once the revenue had the option of not treating the amount as business income, as it did in 1999-2000, it cannot give the background of circumstances in this case in a later year and refuse to treat the interest income as business income and interdict the assessee from exercising its right u/s 36(1)(vii) – as such no substantial question of law arises for consideration – Decided against Revenue. - ITA No. 145/2014 - - - Dated:- 21-4-2014 - S. Ravindra Bhat And R. V. Easwar,JJ. For the Appellant : Mr. Kamal Sawhney, Sr. Standing Counsel with Mr. Sanjay Kumar, Adv. For the Respondent : Mr. Vishal Kalra, Adv. ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business and manufacturing of soft drinks beverages was in the nature of the business of the assessee, hence, the same was incidental to the business of the assessee. The said amount of loan was provided to M/s Dhillon Kool Drinks and Beverages Limited. Thus, it cannot be said that the interest on the loan amount provided by the assessee company was not incidental to the business of the assessee. 12. Thus from the above, we find that the assessee has duly complied with the requisite conditions for claiming the amount to be written off. The said interest was offered to tax as income in the financial year relevant to assessment year 1999-2000. It is undisputed that the amount has become bad/irrecoverable. Furthermore, the transaction was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uctible as business loss u/s. 37 of the I.T. Act. In this case it was held that claim for deduction of non- recovery of trade advances was allowable on the facts of the case, merely because the bad debt claim was not made out under one particular provision of the Act, but was so made out under another provision of law, assessee cannot be deprived of the benefit of deduction of bad debts. 7. The revenue contends that the approach and order of the Tribunal is flawed. It is highlighted by the counsel that by no stretch of imagination can the assessee s business activities said to comprehend giving advance and in that circumstance its attempt to write off the amounts in question were correctly disallowed. The assessee on the other hand cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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