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2014 (3) TMI 899 - AT - Income TaxBad debts not allowed - Sale of immovable property – Written off non receipt of deposit – Held that:- revenue contended that it is a capital loss which cannot be claimed either u/s. 37 as business loss or as bad debt u/s.36(1)(vii) of the Act - the assessee had taken possession on immovable property i.e. residential house in earlier years which was sold during the year and claimed loss on account of sale of the immovable property - The assessee had shown these assets in the balance sheet as capital assets - loss incurred on sale of capital assets is not allowable u/s. 36 (1)(vii) of the Act as bad debt written off as well as business loss u/s. 37 of the Act because it is a capital loss - the assessee made deposit for booking car to M/s. Pal Peugot Ltd. which was not recovered from it and deposit was for capital assets - No income against this debt had been disclosed by the assessee in past – thus, there is no reason to intervene in the order of the CIT(A) – Decided against Assessee.
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