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2013 (9) TMI 301 - AT - Income TaxLoss of security deposit - business loss or bad debts - Capital or Revenue expenditure - conditions specified u/s 36(2) r.w.s.36(i)(vii) - whether the loss of security deposit in question is a business loss in the revenue field - Held that:- the above loss is a business loss ;for the reason that the assessee has taken on lease many premises spread over many parts of the country, and this act of taking this show room on lease is in the normal course of business. In fact 84 show rooms are taken on lease at various places. Six months rent was given as security deposit. This was given in the course of business. The transaction is intimately connected with the business of the assessee - There is no enduring benefit to the assessee. The loss in question is in the revenue field and has been rightly claimed u/s 28. This is not a bad debt. - It is a deposit in the usual course of taking show rooms on lease. - Following decision of Empire Jute Co.Ltd. vs. CIT [1980 (5) TMI 1 - SUPREME Court] - Decided in favour of assessee.
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