https://www.taxtmi.com/caselaws?id=447200 The Bombay HC upheld ITAT's decision in favor of the assessee on two issues. First, regarding slump sale of business activities, the court confirmed that gains were correctly computed as capital gains under Section 50B rather than business income under Section 28(iv), as consideration was monetary. Second, the court validated the deduction for write-off of trade advances from a sick company, noting that tax authorities cannot substitute commercial judgment of businessmen. The ITAT's factual findings were supported by Supreme Court precedent in Mysore Sugar Company Ltd., establishing that unrecoverable trade advances constitute allowable business losses. The Revenue failed to demonstrate any substantial question of law warranting interference with the tribunal's decision. en-us Wed, 13 Dec 2023 00:00:00 +0530 Wed, 20 Dec 2023 09:39:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447200 The Bombay HC upheld ITAT's decision in favor of the assessee on two issues. First, regarding slump sale of business activities, the court confirmed that gains were correctly computed as capital gains under Section 50B rather than business income under Section 28(iv), as consideration was monetary. Second, the court validated the deduction for write-off of trade advances from a sick company, noting that tax authorities cannot substitute commercial judgment of businessmen. The ITAT's factual findings were supported by Supreme Court precedent in Mysore Sugar Company Ltd., establishing that unrecoverable trade advances constitute allowable business losses. The Revenue failed to demonstrate any substantial question of law warranting interference with the tribunal's decision. Case-Laws Income Tax Wed, 13 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447200