Case Law Details
Income Tax Appellate Tribunal was right in holding that the assessee was entitled to claim deduction for bad debts of Rs. 38,20,417/- in respect of the money lending business which was closed down during the accounting year relevant to the assessment year in 1998-99, without following the ratio of the decision of the Supreme Court in the case of Commissioner of Income Tax vs. Gemini Cashew Sales Corporation and contrary to the provisions of Section 36(2)(i) of the Income Tax Act. Merely because the money lending business was subsequently discontinued, that is in the subsequent accounting year relating to the relevant assessment year, it cannot be held that the assessee was disentitled to claim such a deduction though such claim as bad debt was, as a matter of fact, not in dispute.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Tax Case (Appeal) No.912 of 2009
Commissioner of Income Tax-III Chennai .. Appellant
Versus
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