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2015 (4) TMI 581 - AT - Income TaxLoss of Advance given to procure land for future projects - Failure to recover the advance amount - Loss of capital or a revenue expenditure - Held that:- We note that there is no dispute that the amount in question was advanced by the assessee for purchase of land which would be going to form part of stock in trade of the assessee being in the business of construction and development. Accordingly, the said advance becoming irrecoverable and consequently, writing off by the assessee is a revenue loss and an allowable claim being business loss of the assessee as held by Hon'ble Delhi High Court in the case of New Delhi Hotels Ltd. [2012 (3) TMI 325 - DELHI HIGH COURT] Following the Judgment of Hon'ble Delhi High Court in the case of New Delhi Hotels Ltd. [2012 (3) TMI 325 - DELHI HIGH COURT], we do not find any error or illegality in the order of CIT(A) in allowing the claim of the assessee. - Decided against the revenue.
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