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2018 (9) TMI 622 - AT - Income TaxDisallowing claim for deduction u/s 37(1)/28 of advances written off and investments written off - allowability of business loss - Held that:- As relying on M/S. TAMILNADU MAGNESITE LTD. VERSUS THE ASSISTANT COMMISSIONER OF INCOME TAX [2018 (6) TMI 1236 - MADRAS HIGH COURT] the aforesaid expenditure, being business loss for the assessee, was allowable to him once it was established that the project could not takeoff and the management considered it prudent to wrote-off the same in the books of accounts. The assessee has placed two identical Board Resolutions stated to be passed in two different Board Meetings i.e. 19/02/2007 & 02/07/2007 wherein the Board of Directors of the assessee company has decided to write-off the stated advances in the books of account. The dates of the two Board meetings fall in two different years and it becomes important to ascertain the true factual matrix since the claim of the assessee could be admissible only in the year in which the management finally took a decision to write-off the same in the books of accounts. As a logical consequence, it also become imperative to find out that the aforesaid claim has not been claimed /allowed to the assessee in any of the other years. Secondly, Ld. CIT(A) has noted that complete details of expenditure could not be filed by the assessee. Keeping in view the aforesaid factors, while agreeing with the claim of the assessee in principle, the matter stand remitted back to the file of Ld. AO for verification of aforesaid facts. - Decided in favour of assessee for statistical purposes.
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