Court Rules Bad Debt Deduction for Property Advance Not Allowable u/s 36(1)(vii), Overturns ITAT and High Court Decisions.

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....Deduction of bad and doubtful debt u/s 36(1)(vii) - Advance against the purchase of property - This court is of the opinion that as a proposition of law, that enunciation is unexceptional, since the heads of expenditure that can be claimed as deduction are not exhaustive – which is the precise reason for the existence of Section 37. Therefore, in a given case, if the expenditure relates to business, and the claim for its treatment under other provisions are unsuccessful, application of Section 37 is per se not excluded. - the assessee’s claim for deduction as a bad and doubtful debt could not have been allowed. The findings of the ITAT and the High Court, to the contrary, are therefore, insubstantial and have to be set aside. - SC....