Bad Advance written off is allowable expense if it was given in the course of business

The brief facts of this issue is that the assessee advanced a sum of Rs. 2 crores on 20.5.1992 to Broker Shri.Pallav Sheth under portfolio management scheme. The said broker is supposed to manage the trading portfolio of shares and securities on behalf of the assessee. The said advance was made to Shri.Pallav Sheth during the course of business of the assessee for the purpose of purchase and sale of shares under portfolio management scheme. Out of the said advance, a sum of Rs. 1,99,08,500/- became irrecoverable from the said broker and assessee chose to write off the same in its books of acco...