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2018 (1) TMI 1308 - HC - Income TaxDisallowance of Bad Debts - treatment as business loss - Held that:- The assessee had initially received an amount of ₹ 70,00,000/from M/s. Maharishi Traders, which was duly reflected in the books of account. Subsequently, in view of the verdict of the court the assessee was required to pay an amount of ₹ 70,00,000/to M/s. Maharishi Traders. Thus, the assessee was required to pay such amount to M/s. Maharishi Traders in relation to a business dispute. The assessee had regular transactions with the said party. Moreover, it is not disputed that the assessee had shown ₹ 81,49,803/as part of the gross revenue for assessment year 2004-05. The Commissioner (Appeals) was, therefore, wholly justified in holding that since the assessee was required to pay such amount in relation to a business transaction pursuant to the court order, the same was required to be treated as business loss and business expenditure and required to be allowed.
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