If debt become irrecoverable then assessee can writes off it as Bad Debts

PCIT Vs Homi Mehta & Sons Pvt. Ltd. (Bombay High Court)

Assessee had advanced loans to its subsidiary company. The loan was interest bearing. The Respondent- Assessee claimed that the subsidiary company became loss making company and the Respondent- Assessee took a decision to write off the loan and claim the same as bad debts. The said claim has been denied by the Assessing Officer on two counts

(i) that the Respondent- Assessee was not in the business of giving loans and, therefore, con

Please become a Premium member. If you are already a Premium member, login here to access the full content.