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2019 (1) TMI 400 - AT - Income TaxAdvances written off - assessee claimed that the advanced in the course to build his carrier and there is a business exigency in advancing moneys to his wife - deduction u/s. 37(1) or u/s. 28 of the Act as business loss - submission of the assessee that till date the moneys advanced to M/s. Quest Films and also to Mrs. Ayesha Shroff could not be recovered and there is no possibility of recovery in near future - Held that:- We hold that the Ld.CIT(A) having held that the amount advanced by the assessee are business advances is wrong in holding that the said advances cannot be held as deduction as the assessee had written off advances suomoto. We are in agreement with the CIT(A) that the advances written off by the assessee are business advances and there is no challenge by the Revenue to this finding. Once the advances are held to be business advances they are allowable as deduction either u/s. 37(1) or u/s. 28 of the Act as business loss. Deduction cannot be denied on the ground that the assessee had suomoto written off the advances. Thus we reverse the finding of the Ld.CIT(A) to that extent and direct the Assessing Officer to allow the claim of write off of advances by the assessee as business loss u/s. 28 of the Act. - Decided in favour of assessee.
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