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2014 (4) TMI 214 - HC - Income TaxClaim of bad debt of advances paid - Assessee contended that the amount pertains to transaction of loan in the normal course of money lending, which is one of the objects of the assessee-company as per Articles of Memorandum of Association – Held that:- If object clause is already in existence well and good, but even in the absence of such object clause, it is possible for one corporate company to lend money to another corporate company for various reasons - What actually forms basis to allow the benefit of claim as bad debt would be whether a particular transaction was in the ordinary course of business with an intention to lend money or something else - Unless factual material is looked into, one cannot straightaway come to conclusion that a particular transaction is either money lending activity or not - there has to be fresh consideration of the matter, so far as lending of ₹ 30 lakhs and also the interest accrued with reference to whether it was disclosed in the earlier assessment years or not as interest due – the order of the Tribunal is set aside and the matter us remitted back to the AO for fresh adjudication as to the amount claimed as bad debt – Decided in favour of Assessee.
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