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2016 (8) TMI 215 - HC - Income TaxClaim for bad debt disallowed - business carried on by the assessee in respect of which the debts were written off had been discontinued - Held that:- So far as the business activities carried on by the assessee, namely, pharmaceutical and commission agency, are concerned, since there was common management, common fund, common staff administration, consolidated accounts, balance sheet, complete unity of control in the management and administration of both business activities, we find that both the activities constitute same business. We are, therefore, in complete agreement with the view taken by the Tribunal. - Decided in favour of the assessee Disallowance of interest on account of interest free advance given to Sardar Patel Foundation - Held that:- As the assessee was having surplus amount to give interest free advance to Sardar Patel Foundation. The Assessing Officer could not prove that there is a direct nexus between the borrowed funds and the loan given. In that view of the matter, we are of the opinion that the Tribunal has rightly deleted the disallowance. - Decided in favour of the assessee Disallowance of interest on account of interest free advance given to M/s. Madhavdas Tulsidas & Co. - Held that:- Since the principal amount itself is doubtful and there was pending civil and criminal litigation, the disallowance of interest is required to be deleted. We are, therefore, of the view that the Tribunal has rightly deleted the disallowance. - Decided in favour of the assessee
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