TaxTMI 
TaxTMI 
2019 (2) TMI 331
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.... TAX For The Respondent : ADVS. SRI. E. K. NANDAKUMAR (SR. ) AND SRI. P. BENNY THOMAS JUDGMENT Vinod Chandran, J. The appeal by the Revenue relates to the year 1994-95 and is with respect to two dis-allowances made, one under Section 36(1)(vii) and the other under Section 37 of the Income Tax Act, 1961 [for brevity "the Act"]. 2. The questions of law framed in the appeal are re-fram....
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....d to be amounts advanced by the assessee for job works entrusted to the subsidiary company. The Assessing Officer [for brevity "AO"] found that there was no business expediency in declaring the debt to be bad debt. It is also found that the assessee had merely attempted financial support by writing off the bad debts, which cannot be permitted. It was also found that the assessee having continuous ....
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....ere contention taken. The advance given by the assessee also cannot be allowed as a claim under Section 37. 6. The learned Counsel for the assessee, however, would contend that there was ample evidence before all the authorities showing that the subsidiary company was in financial doldrums and the debt was mainly due to the assessee having issued a corporate guarantee against the loan availed b....
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....ation on the assessee to establish the bad debt claimed for the previous year, whereas by the amendment any bad debt or part thereof, which is written off as irrecoverable in the accounts of the assessee for the previous year is eligible for deduction. Hence, the legislature has cautiously left it to the prudence of the assessee to determine whether the debt is bad or not. Further, we see that the....