https://www.taxtmi.com/caselaws?id=773209 ITAT Mumbai allowed the assessee's appeal regarding disallowance of advance written off as bad debt. The tribunal held that even if not allowable as bad debt, the amount qualified for deduction as business loss under Section 37(1) or 28(1) since it was incurred for business expediency in ordinary course of business. The AO failed to establish the transaction was sham or bogus. The tribunal also allowed prior period expenses including ECGC insurance premium and TCS-ION service charges, following precedent that where revenue cannot disprove the assessee's explanation for crystallization of liability during the relevant year, such expenses are allowable. Both grounds of appeal were allowed in favor of the assessee. en-us Mon, 16 Jun 2025 00:00:00 +0530 Thu, 19 Jun 2025 08:29:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773209 ITAT Mumbai allowed the assessee's appeal regarding disallowance of advance written off as bad debt. The tribunal held that even if not allowable as bad debt, the amount qualified for deduction as business loss under Section 37(1) or 28(1) since it was incurred for business expediency in ordinary course of business. The AO failed to establish the transaction was sham or bogus. The tribunal also allowed prior period expenses including ECGC insurance premium and TCS-ION service charges, following precedent that where revenue cannot disprove the assessee's explanation for crystallization of liability during the relevant year, such expenses are allowable. Both grounds of appeal were allowed in favor of the assessee. Case-Laws Income Tax Mon, 16 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773209