Jackie Shroff allowed claim of loan written off given to wife

Advocate Akhilesh Kumar Sah

Mr. Jackie Shroff Vs. ACIT (ITAT Mumbai)

When The Moneys Are Advanced As Measure Of Commercial Expediency Such Advances Are In The Nature Of Business Advances And The Write Off  Of Such Advances By The Assessee Should Be Allowed As Deduction Under Section 37(1) Or Under Section 28 Of The Income Tax Act As Business Loss: Jackie Shroff Recent Case

In Jackie Shroff vs. ACIT [ITA No. 4838/MUM/2016 (A.Y: 2009-10), Decided On 31.12.2018], briefly, the assessee advanced money to M/s. Quest Films which was the proprietary concern of Mrs. Ayesha Shroff being the wife of the assessee. The amounts advanced upto 31.03.2008 stood at Rs. 9,01,68,594/- out of these advances during the current Assessment Year M/s. Quest Films returned an amount of 1,09,25,851/-, thereby the total advances made by the assessee to M/s. Quest Films stood at 7,92,42,743/- by the end of the current Assessment Year. Similarly, assessee advanced 2,31,80,631/- upto 3 .03 2008 to his wife Mrs. Ayesha Shroff and during the current Assessment Year an amount of 1,10,36,405/- was advanced totaling to 3,42,17,236/- to Mrs. Ayesha Shroff. The total advances made by the assessee upto the end of the current Assessment Year stood at Rs. 11,34,59,979/-.

Please become a Premium member. If you are already a Premium member, login here to access the full content.