Amount advanced & lost in the course of business allowable as bad-debt

ACIT Vs Ankur Foundation P. Ltd (ITAT Chennai) The assessee claimed bad-debt of Rs.20 Lacs written-off against Mr. K.M.Pitchai. The same was held to be not allowable under any of the provisions. During appellate proceedings, it was explained that the assessee paid land advance of Rs.25 Lacs to Mr. Pitchaiin AY 2006-07. Since Mr. Pitchai could not fulfil the promise, the assessee demanded the return of money. An amount of Rs.5 Lacs was received during April. 2008 and the balance amount was not received. The assessee took legal action for recovery of the same. Since the advance was paid in the r...