Bad Debts cannot be disallowed for mere absence of a money lending license

Moolchand Kiran Kumar Jain Vs DCIT (ITAT Chennai) In the case of Moolchand Kiran Kumar Jain Vs DCIT, as adjudicated by the Income Tax Appellate Tribunal (ITAT) in Chennai, the issue revolved around the allowance of bad debts written off in the books of accounts, totaling Rs. 6.69 crore. The appellant had extended loans and advances to M/s. Dilip Chabbria Designs Pvt Ltd over several assessment years, amounting to Rs. 71.14 crores. While interest income from these loans had been duly reported and taxed for the assessment years 2016-17 and 2017-18, the appellant sought to write off the bad debts...