Non recovery of debtors for almost 3 years is sufficient reason to write off and claim as revenue loss

General Capital and Holding Company Pvt. Ltd Vs. ITO (ITAT Ahmedabad) Assessee has advanced the sum in question of Rs. 60 lacs and Rs. 40 lacs to M/s. Bhagyam Industries Pvt. Ltd. and M/s. Dolphin Metal (India) Ltd. totaling to Rs. 1 crore through banking channel in its ordinary course of business in lieu of charging interest and non recovery thereof for almost three years formed sufficient reason to write them off as sundry balances as revenue loss to be adjusted against its income of the impugned assessment year. The assessee’s second substantive ground is accordingly accepted. FULL TEXT ...