https://www.taxtmi.com/caselaws?id=327360 The appeal was allowed as the Tribunal found a direct nexus between the written-off advances and the business activity, making the loss allowable under Section 37 of the Income Tax Act. Precedents were cited where bad debts arising from normal business activities were allowed as trading losses under Section 28(1). The High Courts held that debts becoming bad or irrecoverable during normal business activities should be allowed as trading losses. Therefore, the disallowance of the trading loss for the written-off trade advances by the Assessing Officer was deemed unjustified, and the appeal by the assessee was allowed. en-us Thu, 31 Mar 2016 00:00:00 +0530 Tue, 10 May 2016 11:29:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=327360 The appeal was allowed as the Tribunal found a direct nexus between the written-off advances and the business activity, making the loss allowable under Section 37 of the Income Tax Act. Precedents were cited where bad debts arising from normal business activities were allowed as trading losses under Section 28(1). The High Courts held that debts becoming bad or irrecoverable during normal business activities should be allowed as trading losses. Therefore, the disallowance of the trading loss for the written-off trade advances by the Assessing Officer was deemed unjustified, and the appeal by the assessee was allowed. Case-Laws Income Tax Thu, 31 Mar 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=327360