https://www.taxtmi.com/caselaws?id=774386 Punjab and Haryana HC upheld AO's rejection of bad debt deduction of Rs. 10,50,000 under Section 36(1)(vii) read with Section 36(2). The assessee, a manufacturing company, claimed bad debt for an irrecoverable loan but was not engaged in money lending business. The amount was never included in computing income in any previous year, and interest income was shown under "other sources" rather than business income. The assessee maintained no separate books for money lending activities, indicating occasional lending from surplus capital rather than regular business. The HC confirmed that bad debt deduction requires the amount to be previously included in income computation or represent money lent in ordinary course of banking/money lending business, neither condition being satisfied. en-us Thu, 03 Jul 2025 00:00:00 +0530 Tue, 08 Jul 2025 08:36:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774386 Punjab and Haryana HC upheld AO's rejection of bad debt deduction of Rs. 10,50,000 under Section 36(1)(vii) read with Section 36(2). The assessee, a manufacturing company, claimed bad debt for an irrecoverable loan but was not engaged in money lending business. The amount was never included in computing income in any previous year, and interest income was shown under "other sources" rather than business income. The assessee maintained no separate books for money lending activities, indicating occasional lending from surplus capital rather than regular business. The HC confirmed that bad debt deduction requires the amount to be previously included in income computation or represent money lent in ordinary course of banking/money lending business, neither condition being satisfied. Case-Laws Income Tax Thu, 03 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774386