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2014 (2) TMI 513 - ITAT AHMEDABADDeletion made on account of unadjusted balance of advances written off as business loss. – Held that:- The assessee had written off the amount - There is no evidence on record to suggest that the amounts were recoverable even when relevant details were available - In the absence of any contrary evidence we have no alternative but to presume that the amount became irrecoverable when the assessee wrote it off in its books of account - The decision inCIT vs. Abdul Razak and Co. [1981 (2) TMI 27 - GUJARAT High Court] followed - there was no evidence to suggest that any partner of the debtor firm was related to the partner of the assessee firm held that the loss should be allowed as deduction u/s. 28 of the Act - every loss is not so deductible unless it is incurred in carrying out the operation of the business - the amounts written off were advanced during the course of carrying on of business and sprang directly from the business, the amounts forgone are business loss and are allowable – Decided against Revenue.
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