TaxTMI 
TaxTMI 
advances written off
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....dvances written off<br> Query (Issue) Started By: - praveenkumar makam Dated:- 25-10-2010 Last Reply Date:- 28-10-2010 Income Tax<br>Got 3 Replies<br>Income Tax<br>advances written off is an eligible ....
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....expenditure as per IT Act? if it is eligible under which section? and give me the relevant case laws Reply By CA Rachit Agarwal: The Reply: Please clarify the purpose for which the advances was give....
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....n? There are different judgements dealing with various types of advances. Advance word is very broad in nature. Reply By praveenkumar makam: The Reply: dear agarwal sir, advances given for purcha....
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....se of cement which amounts to 89 lakhs, nown that company went to BIFR, so we want to write off such amount please refer regarding this and its case laws Reply By CA Rachit Agarwal: The Reply: If th....
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....e advance for cement is in nature for the purchase of Factory Building or other fixed assets, then such advance would take the colors of Capital in nature and would not be allowed as deduction. Howev....
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....er if the cement purchase was for trading purpose or the cement to be used for the repair, then such advance would take the colors of revenue in nature and would be allowed as deductible expenditure. ....
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.... Supreme Court in CIT v. Mysore Sugar Co. Ltd. [1962] 46 ITR 649 (SC)-<br> Discussion Forum - Knowledge Sharing ....