TaxTMI 
TaxTMI 
2014 (6) TMI 1097
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....earned counsel appearing for the Assessee, as substantial question of law. 3 Mr.Jhaveri submits that the Tribunal was not right in law in holding that the loss on assignment of debt is not allowable as "business loss" under Sections 28 and 37(1) of the Income Tax Act, 1961 in the previous year relevant to Assessment Year 2004­2005. 4 Mr.Jhaveri submits that there was nothing suspicious about the transaction in question. The Assessee had made Inter Corporate Deposit and advanced the monies to the company/ M/s Spentex Industries Limited. Eventually that company went in losses and a reference was made to the Board for Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies Special Provisions Act, 1985, that....
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....refore, submits that the Appeal be dismissed. 6 With the assistance of the learned counsel appearing for the parties we have perused the orders passed by the Assessing Officer, the Commissioner of Income Tax (Appeals) and the Tribunal on the relevant issue. 7 The Appellant approached the Authorities by pointing out that during the year ended on 31.03.2004 relevant to the Assessment Year 2004­2005 the Appellant was carrying on business of running a Business Centre. It filed the return of income for this Assessment Year declaring the loss of Rs.3,97,29,592/­. This return of income was scrutinized and the order was passed on 26.12.2006 whereunder the Assessing Officer held that the loss on assignment of debt amounting to Rs.5,88,....
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.... advanced in hope that the borrower will turn the corner and will come out of the red and will continue its business of manufacturing yarn which was very promising and in demand. The borrower could not turn the corner, eventually the Board of Directors of the Assessee decided to assign the debt. That it was assigned after valuation report. Hence, the claim was that there was nothing suspicious and lacking in bonafide. 11 We do not find that the Authorities in any way failed to appreciate these facts. Mr.Chhotaray has rightly placed reliance on the concurrent findings and particularly those to be found in the Assessing Officer's order. It has been held and concurrently that during the period 31.03.2001 to 26.12.2002 a sum of Rs.1.80 c....