https://www.taxtmi.com/caselaws?id=762971 ITAT Mumbai allowed assessee's appeal regarding write-off of loan to Indonesian subsidiary. The tribunal held that the loan write-off was allowable as business expenditure under section 37, finding that lower authorities misunderstood facts and failed to consider modern business diversification practices. The tribunal noted that entering power sector and vertical diversification are common corporate strategies, and the investment was made for business purposes despite long gestation period. Revenue's view was deemed incomplete, with tribunal relying on recent SC precedents to direct AO to allow bad debt claim under section 37(1). en-us Tue, 24 Sep 2024 00:00:00 +0530 Tue, 10 Dec 2024 13:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762971 ITAT Mumbai allowed assessee's appeal regarding write-off of loan to Indonesian subsidiary. The tribunal held that the loan write-off was allowable as business expenditure under section 37, finding that lower authorities misunderstood facts and failed to consider modern business diversification practices. The tribunal noted that entering power sector and vertical diversification are common corporate strategies, and the investment was made for business purposes despite long gestation period. Revenue's view was deemed incomplete, with tribunal relying on recent SC precedents to direct AO to allow bad debt claim under section 37(1). Case-Laws Income Tax Tue, 24 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762971