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2014 (1) TMI 919 - AT - Income TaxDisallowance made on account of bad debt and advance written off u/s 36(1)(vii) Held that:- The amount of advance given to M/s Dhillon Kool Drinks and Beverages Limited was advanced in the course of business. It is undisputed that the advances became irrecoverable. In such situation, as per the ratio emanating from the decision of the Hon'ble Jurisdictional High Court in the case of Mohanmeakin Ltd. vs. C.I.T. 2011 (5) TMI 243 - DELHI HIGH COURT, it is not relevant that the amount was claimed as bad debt. As per the Hon'ble High Court decision the amount was deductible as business loss u/s. 37 of the I.T. Act. In this case it was held that claim for deduction of non- recovery of trade advances was allowable on the facts of the case, merely because the bad debt claim was not made out under one particular provision of the Act, but was so made out under another provision of law, assessee cannot be deprived of the benefit of deduction of bad debts the order of the CIT(A) set aside Thus, the assessee is eligible to claim deduction on account of write off Decided in favour of Assessee.
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