Bad Debts - Investments written-off - Nevertheless, no new ...

Bad Debts and Investments Written-Off as Business Losses Qualify for Tax Deductions; No New Assets Involved.

June 19, 2021

Case Laws Income Tax AT

Bad Debts - Investments written-off - Nevertheless, no new manufacturing unit would have come into existence and no new asset was proposed to be acquired by the assessee. The advances were given in the normal course of business out of commercial expediency which would have improved the profit-making apparatus without disturbing the capital setup of the assessee. There is no dispute that the said advances became irrecoverable and accordingly, the same were written-off in the books of accounts. - Thus advances lost during the course of business would be business losses and hence, an allowable deduction - AT

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Bad Debts - Investments written-off - Nevertheless, no new ...

Bad Debts and Investments Written-Off as Business Losses Qualify for Tax Deductions; No New Assets Involved.

June 19, 2021

Case Laws Income Tax AT

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