Shortage towards principal is allowable as bad debt In lending business

Global Consultants & Designers Pvt. Ltd Vs ITO (ITAT Delhi) ITAT Delhi held that shortfall in interest adjusted from principal amount on principle of first appropriation towards interest before principal. Then, assessee being in lending business, the shortage towards principal is allowable as bad debt. Facts- The dispute hovers around the fact that during the year under consideration the assessee company advanced a sum of Rs. 6,00,00,000/- to M/s Parsvnath Developers Ltd. (M/s. PDL) refundable by 24.09.2014. M/s PDL Defaulted in payment of principal and interest paid by the agreed date i.e...