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2017 (9) TMI 460 - AT - Income TaxDisallowance of bad debts u/s 36 - Held that:- The assessee company received interest and offered same for taxation. He urged that it was a genuine business transaction and cannot be treated as a colourable device to avoid tax liability. We have given our thoughtful consideration to the fact of the present case, if we accept this contention of the assessee it would lay a wrong precedence. In every case the assessee would advance money to its sister concern and after some help in winding up of sister concern by waiving of the debt. A good debt cannot be allowed to be given colour of bad debt. Therefore, we do not see any reason to disturb the finding of the lower authorities. The ground of the assessee’s appeal is dismissed.
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