Deduction u/s. 37 for written-off of non-recoverable advances to employee allowed: ITAT Ahmedabad

Siwana Agri Marketing Ltd. Vs ACIT (ITAT Ahmedabad) ITAT Ahmedabad held that amount written-off towards non-recoverable advances given to employees which are incidental to business operations qualifies as deductible business expenses under section 37 of the Income Tax Act. Facts- The case of the assessee was selected for scrutiny under the Computer Assisted Scrutiny Selection (CASS) and the AO completed the assessment u/s. 143(3) of the Act on 27-11-2019, determining total income at Rs.97,85,762/-. AO disallowed Rs.65,86,200/- u/s. 36(1)(iii) of the Act, observing that the assessee had advance...