Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (12) TMI 1119 - AT - Income TaxAddition made on account of bad debt written off - Held that:- In the present case, the condition stipulated in Sec 36(2) of the Act was satisfied in as much as the amount of debt representing money lent in the ordinary course of business of money lending, which is carried on by the assessee was written off in the books of account as irrecoverable. On perusal of the order of the CIT-A, we find that the Chairman of the assessee company vide its Board Meeting/Board Resolution has approved the bad debt of ₹ 2,59,67,905/-. We further find that the impugned loan, on which impugned bad debt arisen, was given in the normal course of business, which cannot be ignored in the facts and circumstances of the case. The CIT-A was justified that the bad debt claimed by the assessee for an amount of ₹ 2,59,67,905/- is held to be an allowable being business expenditure. Therefore, we find no infirmity in the order of the CIT-A in holding the same. Accordingly, we direct the AO to delete the same. - Decided in favour of assessee.
|