| COURT: | Bombay High Court |
| CORAM: | M. S. Sanklecha J, N. M. Jamdar J |
| SECTION(S): | 36(1)(vii), 36(2) |
| GENRE: | Domestic Tax |
| CATCH WORDS: | Bad Debt, ICD |
| COUNSEL: | Bharat Damodar |
| DATE: | August 5, 2015 (Date of pronouncement) |
| DATE: | August 12, 2015 (Date of publication) |
| AY: | 2004-05 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 36(1)(vii)/ 36(2): The principal part of the Inter-corporate Debt (ICD) can be claimed as a bad debt if the interest thereon has been offered to tax in some year | |
The debt comprises not only the brokerage which was offered to tax but also principal value of shares which was not received. Therefore, even if a part of debt is offered to tax, Section 36(2)(i) of the Act, stands satisfied. The test under the first part of Section 36(2)(i) of the Act is that where the debt or a part thereof has been taken into account for computing the profits for earlier Assessment Year, it would satisfy a claim to deduction under Section 36(1)(vii) read with Section 36(2)(i) of the Act
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