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2013 (12) TMI 631 - ITAT MUMBAIDisallowance of writing off of deposits with debtors – The deposits relate to the business which has been closed down and sold off - These are generally deposits with statutory authorities - Others are in relation to other than Government authorities also - Held that:- Following G.R.Pandya Share Broking Ltd. vs. ITO [2008 (9) TMI 612 - ITAT MUMBAI] – If the amounts receivable from the Government authorities are taxable as income then such amounts not receivable shall be allowed as deduction – The matter set aside for fresh decision. Sundry interest receivable from Directors of the assessee company – The loan as well as interest on such loan has been written off by the company - Held that:- Since the loan and interest was receivable from the Directors of the assessee-company itself, therefore, in my considered view written-off the same as bad debt was not justified at the end of the assessee-company. The Director or the Person who manages the affairs of the assessee-company, how the Directors can take a view that the loan paid by them along with interest has become bad? - The amount written-off by the Directors of the assessee-company was just to avoid the taxability which has arisen on account of interest and rental income – Decided against assessee.
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