1976 (4) TMI 110

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....venue loss incidental to money lending business or a deduction as bad debt, is challenged. 2. The assessee is an individual and he is the son of Shri. Y. Chettier, who was connected with a number of textile mills. During the assessment year 1972-73, the assessee had advanced various amounts to a number of mills and such advances carried interest ranging from 8-1/4% to 12% per annum. The assesse....

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....e loss was incidental to such money-lending business and allowed it under s.28 of the Act. He also pointed out that the assessee, as a prudent business man tried to salvage as much as possible by getting some amount and the loss is admissible as a bad debt under s.36 (1)(vii) of the Act. As against such findings, the revenue is in appeal. 3. The learned departmental representative urged before ....

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....the assessee had earned interest income. In respect of his advances to Pudukotta Textile Mills, in view of the financial difficulties of that company, the assessee had to assign this asset to a person who took over the mills at a loss. It cannot be stated that the assessee, who knew the position of the mill had advanced monies only by way of investment. Perhaps, as his father was managing this mil....