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2009 (8) TMI 782 - AT - Income TaxDisallowance of amount paid towards discharge of corporate guarantee obligation - Held that:- Both the advances and discharge of liabilities under the corporate guarantees were incurred in the normal course of business for carrying out its business obligations and are legitimately claimed as business loss as they were physically paid out to the bankers by way of cheque payments at the time of the respective settlements to them - Hon’ble Apex Court decision in the case of S.A. Builders Ltd. v. CIT [2006 (12) TMI 82 - SUPREME COURT] – It was held that if the assessee had given corporate guarantee for the purpose of business on grounds of commercial expediency, the amount paid for discharge of corporate guarantee would be allowable as deduction under section 37(1) of the Income Tax Act Appeal is dismissed
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