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Written off of irrecoverable advances to company being in nature of business loss is allowable as deduction
Case Law Details
- Case Name
- ACIT Vs Shri V Krishnamurthy (ITAT Chennai)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2012-13
- Courts
- All ITAT, ITAT Chennai
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ACIT Vs Shri V Krishnamurthy (ITAT Chennai)
ITAT Chennai held that written off of irrecoverable advances given to company partakes the nature of business loss which can be allowed as deduction. Accordingly, delete additions made towards disallowance of written off of advances.
Facts- During the course of assessment proceedings, AO noticed that the assessee has debited a sum of Rs. 6,32,96,032/- under the head ‘investment written-off’ to its profit & loss account of Meena Enterprises, a proprietary concern.
AO was not convinced with the explanation furnished by the asse...
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