Written off of irrecoverable advances to company being in nature of business loss is allowable as deduction

ACIT Vs Shri V Krishnamurthy (ITAT Chennai) ITAT Chennai held that written off of irrecoverable advances given to company partakes the nature of business loss which can be allowed as deduction. Accordingly, delete additions made towards disallowance of written off of advances. Facts- During the course of assessment proceedings, AO noticed that the assessee has debited a sum of Rs. 6,32,96,032/- under the head ‘investment written-off’ to its profit & loss account of Meena Enterprises, a proprietary concern. AO was not convinced with the explanation furnished by the assessee and accordin...