| |
| The Tax Publishers2019 TaxPub(DT) 4596 (Kol-Trib) INCOME TAX ACT, 1961
Section 28
Money was advanced by assessee to M/s. Refractory Specialities (India) Ltd. against supply of refractory materials in ordinary course of assessee's business which subsequently became irrecoverable on account of liquidation of supplier company and hence constituted loss incidental to business and same ought to have been allowed as deduction.
|
Business loss - Allowability - Money lent in the ordinary course of business having become irrecoverable -
Assessee claimed deduction advance given to M/s. Refractory Speaclities (India) Ltd. of Rs. 10,00,000 written off as irrecoverable in the books of assessee. AO disallowed deduction.Held: Money was advanced by assessee to M/s. Refractory Specialities (India) Ltd. against supply of refractory materials in ordinary course of assessee's business which subsequently became irrecoverable on account of liquidation of supplier company and hence constituted loss incidental to business and same ought to have been allowed as deduction.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
INCOME TAX ACT, 1961
Section 14A Rule 8D
 SUBSCRIBE FOR FULL CONTENT
|