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2015 (9) TMI 1418 - AT - Income TaxDisallowance of business loss - Revenue's basic thrust of the arguments is that since the loss is not incurred in the course of business carried on by the assessee, it should not be allowed as a deduction - CIT(A) allowed the claim - Held that:- It is an undisputed position that the assessee did in fact trade in processed agricultural produce, in connection with which advances in question were made, and it was in the course of this trading that business loss of making unrecoverable advances was incurred. The losses were thus wholly incidental to the business carried on by the assessee. There may not be any trading transactions of these products in the current year but the business of the assessee has not come to a halt. No doubt, criminal complaint filed by the assessee had not reached finality and the persons, who allegedly and fraudulently obtained these advances, were on bail given by Hon’ble High Court, the remote possibilities of recovery did not take away assessee’s right to claim reasonably foreseeable business loss. Learned CIT(A) has given categorical and detailed findings about these advances having become actually bad and these findings remain uncontroverted As regards learned CIT(A)’s having confirmed the disallowance of business loss in respect of monies unrecoverable from Quality Foods (Rs.7,12,500) and S.N. Das Freight Forwarders Pvt. Ltd. (Rs.2,99,387), the assessee could not bring on record any material, to establish the fact of loss, before us either. Learned Counsel for the assessee has made elaborate arguments on admissibility of such losses but, in the absence of sufficient material to establish the fact of the alleged loss, we are not swayed by these arguments. We, therefore, confirm the stand of the ld. CIT(A) on this aspect as well.
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