All Grow Finance And Investment Pvt. Ltd. Vs CIT (Delhi High Court)- Only condition laid down in second part of sub-section 2 of Section 36 of the Act is that the amount should be advanced in the ordinary course of business which by itself proves its revenue nature and no further conditions are required to be satisfied which are only applicable with regard to debt qualifying as bad debt in the first part of sub-section 2. We are of the view that revenue is not justified in holding that the amount of Rs. 34,95,000/- was not allowable as bad debt under Section 36(1)(vii) read with Section 36(2) of the Act.
IN THE HIGH COURT OF DELHI AT NEW DELHI
ITA No. 682/2011
Judgement reserved on : 5th MAY, 2011
Judgement delivered on : 3rd JUNE, 2011
ALL GROW FINANCE AND INVESTMENT P. LTD.
Vs
COMMISSIONER OF INCOME TAX
(i) Whether on the facts and circumstances of the case, the Tribunal was justified in holding that the bad debt amounting to Rs. 34,95,000/- were not allowable under Section 36(1)(vii) read with Section 36(2) of the Act.
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