Inter-corporate deposits written off in the books allowable as business expenditure where the incomes from such deposits were taxed as business income in earlier years

CIT Vs ABC Bearing Limited (Bombay High Court)- The taxpayer was engaged in the business of advancing loans. Interest received from inter-corporate deposits was offered to tax as business income and accepted by the Assessing Officer in earlier years. During the year, the taxpayer filed its return of income, claiming inter-corporate deposits written off in the books as allowable business expenditure. While such claim by the taxpayer was not accepted at lower levels, the Income-tax Appellate Tribunal  allowed the claim of the taxpayer based on facts. Aggrieved by the aforesaid order of the Tri...