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2016 (6) TMI 258 - AT - Income TaxDisallowance made on account of loss on sale of repossessed assets being capital in nature - Held that:- Loss is on account of bad debts. The loss on account of sale of repossessed assets is nothing but a write off of bad debts. The nomenclature cannot change the real character of the transaction. The appellant debited the loss to revenue account as it is incidental to business. Under no stretch of imagination, this loss can be considered as capital in nature as done by the Assessing Officer. On the basis of the aforesaid decisions, it can be concluded that loss on sale of repossessed assets can be considered for deduction as business loss. This is particularly so as there is no bar in claiming a loss as a business loss, if the same is incidental to carrying on of a business. See Commissioner of Income Tax Versus Citicorp Maruti Finance Ltd. [2010 (11) TMI 802 - Delhi High Court ] and Harshad J Choksi vs. CIT, Bombay [2012 (8) TMI 710 - BOMBAY HIGH COURT ] - Decided in favour of assessee
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