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2017 (1) TMI 1335 - ITAT KOLKATAAmount of advances given in the course of business - whether is allowable expenses while computing the business profit? - Loan liability written back - Held that:- The advance was provided on the principal of commercial expediency and for the purpose of the business. It is settled proposition of law that in what manner the assessee should conduct his business is that left to the discretion of the assessee and the assessing officer cannot sit in the arm chair of the businessman to decide what should have been the income earned. Therefore in our considered view we do not find any interfere in the order of ld. CIT(A)in allowing claim - Decided in favour of assessee Amount of loan given in the course of business is allowable expenses while computing the business profit - Held that:- The loan given in the course of the business is a business transaction and therefore it should be allowed for deduction while computing the business income of the assessee. Hence the issue raised by the assessee is allowed Loan liability written back has arisen in the normal course of business and therefore chargeable to tax as income - Held that:- The loan was given to the mills in the course of the business and in the event of writing off the same in the books as irrecoverable is allowable for deduction. While holding so, we have relied in the case of CIT Vs. Ramaniyam Homes (P) Ltd. (2016 (4) TMI 954 - MADRAS HIGH COURT). Accordingly in our considered view the same ratio is also applicable in the instant issue. Therefore we do not find any reason to interfere in the order of ld. CIT(A).
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