TMI Blog2002 (1) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of addition of Rs. 1,07,469 made by the AO on account of bad debt. 2. The CIT(A) deleted the addition accepting the contention of the assessee that the claim of bad debt, even if not allowable under the provisions of s. 36(1)(vii), the assessee is entitled to deduction of the claim as business loss under s. 28(1) of the Act. 3. The assessee-firm deals in trading of cottonyarn and fibre. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said firm and, therefore, is not covered under the provisions of s. 36(2)(i). The AO accordingly disallowed the amount of Rs. 1,07,469. 4. The assessee carried the matter in appeal before the CIT(A). The CIT(A) held that the provisions of s. 36(2)(i) do not apply inasmuch as the amount written off represents the advances paid by the assessee to the said firm against the supply of goods and, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
