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2020 (10) TMI 359 - ITAT MUMBAIDisallowance on account of inter-corporate deposits written off - said ICD carried an interest rate of 12% p.a and the assessee had duly offered to tax the interest income on such ICD under the head “income from business” - HELD THAT:- Interest income on ICD was taxed by the revenue in earlier assessment years under the head “income from business”. This action itself goes to prove that revenue had factually accepted the fact that ICD was advanced by the assessee in the ordinary course of its business. When such ICD together with its interest portion thereof had been written off by the assessee due to its non-recovery and due to the fact of borrower expressing its inability to pay and finally arriving at one time settlement thereof, any consequential write off of the remaining figure in ICD would obviously become only business loss incurred by the assessee as the advancing of money there of had been done in the ordinary course of its business. As correctly followed CIT vs. Pudumjee Pulp & Paper Mill Ltd. [2015 (8) TMI 719 - BOMBAY HIGH COURT] wherein under similar facts and circumstances, the Hon’ble Bombay High Court had allowed the claim of write off of ICD as the business loss. No infirmity in the action of the ld. CIT(A) granting relief to the assessee with regard to allowability of write off of ICD amounts as business loss. - Decided against revenue.
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