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2014 (5) TMI 235 - DELHI HIGH COURTLoans provided to the bank - Disallowance of bad debts u/s 36 of the Act – Held that:- Providing the loans to company involved in the business and manufacturing of soft drinks beverages was in the nature of the business of the assessee – it was incidental to the business of the assessee – the amount of loan was provided to M/s Dhillon Kool Drinks and Beverages Limited - it cannot be said that the interest on the loan amount provided by the assessee company was not incidental to the business of the assessee – Relying upon Mohanmeakin Ltd. vs. C.I.T. [2011 (5) TMI 243 - DELHI HIGH COURT] - section 36(1)(vii) is premised upon treating the income as business income as is evident from the specific reference to section 28 - Once the revenue had the option of not treating the amount as business income, as it did in 1999-2000, it cannot give the background of circumstances in this case in a later year and refuse to treat the interest income as business income and interdict the assessee from exercising its right u/s 36(1)(vii) – as such no substantial question of law arises for consideration – Decided against Revenue.
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