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2015 (11) TMI 626 - AT - Income TaxDisallowance of bad debts - Held that:- The assessee was carrying out commission business and having business dealings with farmers which is not disputed by the lower authorities. As held by the hon'ble Supreme Court in the case of T. R. F. Ltd. v. CIT [2010 (2) TMI 211 - SUPREME COURT] if the assessee has written off bad debts as irrecoverable in the accounts of the assessee, the claim is to be allowed under section 36(1)(vii). The fact that the same were outstanding for last 3-6 years has not been disputed. It has not been disputed that the nature of business of the assessee is such that the assessee was required to give advance to farmers. Therefore, the debts are connected with the business income earned by the assessee. The same is allowable under section 36(1)(vii). Alternately, it is allowable under section 37 also. In view thereof, allow the assessee's claim as the assessee is eligible to claim bad debt. - Decided in favour of assessee.
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