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2010 (4) TMI 726 - AT - Income TaxRevision - Scrutiny - Set off and carry forward of capital loss - The assessee had passed resolutions showing that the amounts were not in the nature of loans or money lending transactions - it was only operating the mill under leave and licence basis, the amount of the advance of Rs.20 lakhs given by the assessee to the cotton mills was not for its own purpose by way of business expenditure for modernising the mill but represented capital to the cotton mill which in turn undertook to modernize the mill - The advances not being in the nature of loans in the course of money lending business and not having been made for the purpose of assessee’s own business, the Supreme Court held that the amount cannot be claimed as a business loss - Unless it is successfully shown that the expenditure had nothing to do with the carrying on of the assessee’s business, the contention of the revenue that the loss cannot be allowed as a business loss must fail - Decided in the favour of the assessee
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