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2024 (1) TMI 54 - ITAT RAIPURBad debts - Disallowance of advance/balance written off claimed as deduction - amount as advanced by the assessee company towards the purchase of property, i.e., stock-in- trade but was written off on becoming irrecoverable - HELD THAT:- As in the present case before us, it is an admitted fact that the amount advanced by the assessee company to commission agent, for the purchase of certain agricultural land as stock-in-trade of its business in its normal course of business as a real estate developer, i.e., for purchase of stock-in-trade, i.e., agricultural lands at had thereafter become irrecoverable; therefore, the same, in our considered view, as per the principle laid down in the aforesaid judgment of Mysore Sugar Co. Ltd.[1962 (5) TMI 3 - SUPREME COURT] was rightly claimed by the assessee company as a business loss that was deductible while computing its income for the year under consideration. We, thus, not being able to persuade ourselves to subscribe to the view taken by the lower authorities who had declined the assessee’s claim for the deduction, set aside the order of the CIT(Appeals) and vacate the disallowance - Decided in favour of assessee.
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