ITAT Mumbai Allows Bad Debt Claim on Irrecoverable NBFC Loan of ₹5 Cr

Advertisement DSP Adiko Holdings Pvt. Ltd. Vs DCIT (ITAT Mumbai) The appeal before the Income Tax Appellate Tribunal (ITAT), Mumbai, involved DSP Adiko Holdings Pvt. Ltd. (the assessee), a Non-Banking Finance Company (NBFC), contesting the disallowance of a claim for bad debt or business loss. The claim stemmed from the non-recovery of a portion of a loan advanced to Shri Ramalinga Raju. Issue and Background In the Financial Year , the NBFC advanced a loan of to Ramalinga Raju as part of its lending business. The loan became irrecoverable, leading the assessee to file a suit in the Bombay H...