TMI Blog1980 (10) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... es was claimed by the assessee as a revenue item of expenditure but disallowed by the ITO. A sum of Rs. 1,938 advanced as a customary loan to one of his employees who left the service without notice and could not be traced was claimed as bad debt. These and an amount of Rs. 400 on account of the expenses were disallowed by the ITO. The AAC having confirmed the ITO's order the matter is in appeal b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e business. That the amount has been lost is not disputed. That claim of bad debt has to be allowed. The item of expenditure on tea etc. would come under the definition of entertainment expenses. Having regard to the details of the expenditure claimed we are satisfied that on the ratio of the Gujarat High Court's decision in Patel Brothers 106 ITR 424 the claim should be allowed. The other grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X
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