https://www.taxtmi.com/caselaws?id=772463 The Madras HC held that an assessee-promoter who pledged shares of one company to secure a loan for a sister company and subsequently wrote off the resulting loss as bad debt was entitled to claim deduction. The court found that pledging shares to enable a group company to obtain financing constituted business activity, and the loss was incurred for business expediency. Following the Mahindra and Mahindra precedent, the court ruled that once an assessee records an amount as business loss in books of account, it establishes prima facie that the loss was not recoverable, with the burden on the Assessing Officer to prove otherwise with cogent reasons. en-us Tue, 03 Jun 2025 00:00:00 +0530 Mon, 09 Jun 2025 07:29:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=772463 The Madras HC held that an assessee-promoter who pledged shares of one company to secure a loan for a sister company and subsequently wrote off the resulting loss as bad debt was entitled to claim deduction. The court found that pledging shares to enable a group company to obtain financing constituted business activity, and the loss was incurred for business expediency. Following the Mahindra and Mahindra precedent, the court ruled that once an assessee records an amount as business loss in books of account, it establishes prima facie that the loss was not recoverable, with the burden on the Assessing Officer to prove otherwise with cogent reasons. Case-Laws Income Tax Tue, 03 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=772463