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2019 (4) TMI 1668 - AT - Income TaxAddition u/s 14A - Assessee received dividend income - HELD THAT:- In the case in hand, the assessee has derived dividend income only from one company and no expenditure has been incurred. Therefore, no disallowance needs to be made. Direct the AO to delete the disallowance. Allowable business loss - advances given in the ordinary course of business - HELD THAT:- Assessee has made advance to Shri Nikhil Talwar in F.Y. 2009-10. The advance was given in respect of tours and travels for business purposes. Shri Nikhil Talwar happens to be the President of the assessee company who died in June, 2013. Since no travelling bills/ bills of expenses incurred by Shri Nikhil Talwar were submitted, the assessee wrote off the advance given to Shri Nikhil Talwar. The advances were given in the ordinary course of business cannot be brushed aside lightly. It is true that the write off does not come within the purview of section 36(2) of the Act, but at the same time, the same has to be considered as business loss u/s 28 of the Act. Similar view has been taken by the Hon'ble Delhi High Court in the case of Mohan Meakin Ltd [2011 (5) TMI 243 - DELHI HIGH COURT] and case of Lucky Goldstar Company Ltd [2018 (11) TMI 546 - ITAT KOLKATA] . The write off may not be allowable as bad debt but the same is definitely allowable as business loss. Ground No. 2 is also allowed
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