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The Tax Publishers Alfino Fashions (P) Ltd. v. Dy. CIT [IT (SS) A No. 600/Ahd/2011, 31-3-2016] : 2016 TaxPub(DT) 2137 (Ahd-Trib) Write-off of vendor advance for non-supply of goods allowability thereof *Facts:* Assessee has discontinued his readymade business arising out of which had to write off some advances. Assessing officer & Commissioner (Appeals) disallowed the same under section 36(1)(vii) citing that assessee did not establish write off of the bad debt. On further appeal by assessee: Held in favour of the assessee that the advance was a business loss allowable as per section 37 and not under section 36(1)(vii).

The Tax Publishers

Alfino Fashions (P) Ltd. v. Dy. CIT [IT (SS) A No. 600/Ahd/2011, 31-3-2016] : 2016 TaxPub(DT) 2137 (Ahd-Trib)

Write-off of vendor advance for non-supply of goods allowability thereof

Facts:

Assessee has discontinued his readymade business arising out of which had to write off some advances. Assessing officer & Commissioner (Appeals) disallowed the same under section 36(1)(vii) citing that assessee did not establish write off of the bad debt. On further appeal by assessee:

Held in favour of the assessee that the advance was a business loss allowable as per section 37 and not under section 36(1)(vii).