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ITAT rejects Bad Debt Claim in respect of Loan to related entity by NBFC
Case Law Details
- Case Name
- Instronics Limited Vs ITO (ITAT Delhi)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2016-17
- Courts
- All ITAT, ITAT Delhi
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Instronics Limited Vs ITO (ITAT Delhi)
In the recent case of Instronics Limited Vs Income Tax Officer (ITO), the Income Tax Appellate Tribunal (ITAT) Delhi addressed a critical issue concerning the treatment of a bad debt claim. Instronics Limited, an NBFC, had claimed a deduction for a loan amounting to ₹53,11,956 that was deemed irrecoverable. The dispute centered around whether this amount could be considered a bad debt under Section 36(1)(vii) of the Income Tax Act, 1961.
Background
Instronics Limited had extended a loan to UM Power Limited, a sister concern, which later became unrecover...
