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2009 (2) TMI 483 - HC - Income TaxReal Estate Business - in view of the fact that land and flat in issue had been purchased in the assessment year 1998-99 and the fact that since then it continued to be shown by the assessee as stock-in-trade, then, merely by virtue of the fact that in the interregnum (i.e., the assessment year 1998-99 and the assess-ment year under consideration) there had been no profit or gain shown by the assessee it could not be assumed that the assessee had given up its business of real estate. Business Loss - though a sum of Rs. 4 lakhs could not be allowed as a bad debt under the provisions of section 36(1)(vii) of the Act since the said sum had not been taken into account in computing the income of the earlier years and hence the conditions prescribed under section 36(2) of the Act were not fulfilled ; the said loss, however, could be treated as business loss since it was occasioned in the course of business carried on by the assessee Disallowance of bank interest - Tribunal having returned findings of fact, that the loan given to bodies corporate had not been diverted for "non-business" purposes, as also that, the loan had continued from earlier years ; the interest on bank loan ought to be allowed to the assessee as a deduction as there was no perceptible change in circumstances - No substantial question of law - appeal dismissed
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