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2016 (5) TMI 341 - AT - Income TaxDisallowance of trading loss consisting of advance - Held that:- As decided in CIT V Versus Abdul Razak And Co. [1981 (2) TMI 27 - GUJARAT High Court ] any debt which arose during the course of normal business activity and which becomes bad or irrecoverable, the same has to be allowed as trading loss under section 28(1). Considering the facts and circumstances of the case on hand, in our opinion, the Assessing Officer was not justified in making the disallowance of trading loss in respect of written off of trade advances made by the assessee to the parties namely Rayees Readymade And Denguz Apparels in the course of its business operation. Therefore, the Assessing Officer is directed to allow the aforesaid disallowance made by him. - Decided in favour of assessee
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