2014 (5) TMI 235

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....Respondent : Mr. Vishal Kalra, Adv. ORDER 1. Issue notice. 2. Notice is accepted by Mr Vishal Kalra, Adv. for the respondent. 3. The revenue is aggrieved by the order dated 5.7.2013 of the ITAT whereby the assessee's contention that the claim of bad debts of Rs.1,01,18,849/- disallowed for assessment year 2003-04 was not justified, was accepted, is under challenge. 4. It is contende....

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.... appeal the ITAT took into consideration inter alia the objects of the assessee-company and the previous history when the interest was sought to be offered for tax as business income in the assessment year 1999-2000. Thereafter the Tribunal held as follows : '11. From the above, it is clear that providing the loans to company involved in the business and manufacturing of soft drinks beverages w....

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....bsp; 13. Thus, we find that the Assessing Officer has made the disallowance on the premise that the amount involved was capital in nature. From no point of view, this opinion of the Assessing Officer is sustainable. Ld. Commissioner of Income Tax (A) has himself not considered the disallowance from this angle. Hence, the plea of the Assessing Officer has no cogency and is liable to be dismissed....

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....risdictional High Court in the case of Mohanmeakin Ltd. vs. C.I.T. 348 ITR 109, it is not relevant that the amount was claimed as bad debt. As per the Hon'ble High Court decision the amount was deductible as business loss u/s. 37 of the I.T. Act. In this case it was held that claim for deduction of non- recovery of trade advances was allowable on the facts of the case, merely because the bad d....