https://www.taxtmi.com/caselaws?id=205210 Advances made for website development that became irrecoverable after the project was abandoned were not allowable as bad debt because the amounts had not been taken into account in computing income and the statutory conditions for that deduction were not met. The alternative plea of business loss was nevertheless supportable under Rule 27 of the Income-tax (Appellate Tribunal) Rules, 1963, since no further facts were required and the appeal covered the whole controversy. Website development expenditure was treated as revenue in nature because a website supports day-to-day business and needs constant updating, so the irrecoverable advances were incidental to business and allowable as business loss. en-us Tue, 15 Feb 2011 00:00:00 +0530 Wed, 04 May 2011 10:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=205210 Advances made for website development that became irrecoverable after the project was abandoned were not allowable as bad debt because the amounts had not been taken into account in computing income and the statutory conditions for that deduction were not met. The alternative plea of business loss was nevertheless supportable under Rule 27 of the Income-tax (Appellate Tribunal) Rules, 1963, since no further facts were required and the appeal covered the whole controversy. Website development expenditure was treated as revenue in nature because a website supports day-to-day business and needs constant updating, so the irrecoverable advances were incidental to business and allowable as business loss. Case-Laws Income Tax Tue, 15 Feb 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=205210