Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (1) TMI 34 - AT - Income TaxDividend income - Application of Rule 8D - Claim of bad debts - Held that: - Obviously the assessee is maintaining separate books of account for the purpose of business and these investments are in his personal capacity. The A.O. also has not disallowed any expenditure of personal nature out of the income from business or profession in the computation of income in the assessment order. In view of this we are of the opinion that the expenditure claimed in the business of share dealings cannot be correlated to the incomes earned in personal capacity that too on dividend, PPF interest and tax free interest on RBI bonds. The amounts advanced by the assessee in the course of business activity are to be treated as an allowable amount under section 36(2). Considering the facts of the case and the fact that assessee has written off the amount in the books of account, we are of the opinion that the amounts are allowable as bad debt. A.O. is free to bring it to tax in the year in which the assessee recovers the amount, if any.
|