Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 199 - HC - Income TaxAllowability of bad debts - advanced to one Developers for booking commercial space in an upcoming construction project - allowable u/s. 36(1) (vii) OR business loss u/s. 37(1) - Tribunal was of the opinion that Assessee in business of real estate, loss was business loss and was allowed u/s 37(1) - HELD THAT:- We do not find any error in the view of the Tribunal. The Assessee was engaged in the business of real estate and financing. The object clause for incorporation of the company widely worded and would cover within its fold range of activities such as erection, construction of buildings and houses as also purchase, sale and dealing in freehold and leasehold land to carry on business as developers of land, buildings, immovable properties. It was in furtherance of such object that the Assessee had entered into a commercial venture by booking commercial space with a developer in the upcoming construction of commercial building, the payment being in the advance booking. The sum was not refunded. This was thus clearly a business loss. We may notice that in the later year when due to continued efforts, the Assessee recovered a part of the said sum, the same was offered as business income. - Decided against revenue.
|