TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Highlights
of of All Highlights
Note
Bookmark
Share
Don't have an account? Register Here
of HC reversed ITAT's ruling on allowance of bad debts under Section 36(1)(vii) of the Act. The court found that Assessee's claim failed to meet statutory requirements as the debt was neither accounted for in computing prior year income nor represented money lent in ordinary course of banking/lending business. HC determined the arrangement between Assessee and CIPL (group company) was a deliberate device to transfer losses from loss-making entity to profit-making entity within same group. Evidence showed CIPL had financial capacity to partially settle dues, demonstrated by its Rs. 10 crore donation. The court concluded this was a colorable device to reduce tax liability, with CIPL benefiting from liability write-off while being tax-exempt due to losses.
TaxTMI 
TaxTMI 
