https://www.taxtmi.com/caselaws?id=774879 ITAT Hyderabad remanded the case to AO for fresh adjudication regarding disallowance of bad debts written off by appellant who advanced money to movie producers. While acknowledging that advances given in normal course of business and subsequently written off as bad debts are allowable deductions under section 36, the tribunal found insufficient evidence that interest income from these advances was offered to tax as business income in preceding years. The tribunal emphasized need for proper verification of loan nature and interest treatment to establish business connection. Appeal allowed for statistical purposes pending fresh examination by AO. en-us Wed, 07 May 2025 00:00:00 +0530 Mon, 14 Jul 2025 17:07:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774879 ITAT Hyderabad remanded the case to AO for fresh adjudication regarding disallowance of bad debts written off by appellant who advanced money to movie producers. While acknowledging that advances given in normal course of business and subsequently written off as bad debts are allowable deductions under section 36, the tribunal found insufficient evidence that interest income from these advances was offered to tax as business income in preceding years. The tribunal emphasized need for proper verification of loan nature and interest treatment to establish business connection. Appeal allowed for statistical purposes pending fresh examination by AO. Case-Laws Income Tax Wed, 07 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774879