Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 460 - AT - Income TaxClaim of deduction of bad debts/business loss – Held that:- Assessee has written off the amount and explained that the assessee engaged in the sale and servicing of computers and related activities was raising bills to its customers - Many of its customers deducted certain amount from the bills on account of various reasons such as rate difference, lack of proper servicing i.e. upto the satisfaction of the customers - This amount being not realized/realizable was debited to the rate difference amount - there is no material on record to doubt the genuineness of the claim of the assessee – Relying upon TRF. LTD. Versus COMMISSIONER OF INCOME-TAX [2010 (2) TMI 211 - SUPREME COURT] – Decided in favour of Assessee. Deduction of interest – Held that:- The assessee has advanced the amount to third party for making purchases in the normal course of its business, it was a business advance on which no interest was chargeable - disallowance of interest by the AO that the advance was out of borrowed capital is not sustainable – Decided in favour of Assessee.
|