Advance Loss Treated as Trading Loss: ITAT Allows ₹1.5 Cr Write-Off

Bengal Omnitech Nirman Limited Vs ACIT/ITO (ITAT Kolkata) Advance Lost in Project = Trading Loss: ITAT Allows ₹1.5 Cr Write-Off & Higher Interest to Directors Justified in Current-Account Dealings Assessee, a real-estate developer, claimed business loss of ₹1,50,00,000 written off as bad debt towards advance paid to New Look Intex P. Ltd. for supply of ready-mix concrete for the Omni Lake View project. AO disallowed the claim holding that no revenue was recognised from the project & treated the loss as capital in nature. CIT(A) upheld the disallowance. Tribunal observed that the ad...