|DATE:||(Date of pronouncement)|
|DATE:||May 23, 2011 (Date of publication)|
|Click here to download the judgement (manori_bad_debt_biz_loss.pdf)|
If Not ‘Bad Debt’, ‘Business Loss’ claim sans specific ground invalid
The assessee claimed advances of Rs. 10.85 lakhs as a “bad debt” u/s 36(1)(vii). The AO & CIT (A) rejected the claim on the ground that as the debt had not been accounted as income, the conditions of s. 36(2) were not satisfied and the claim was not allowable. The alternate claim as a “business loss” was also rejected by the CIT (A). Before the Tribunal, the assessee raised a ground only on “bad debt” (and not “business loss”). At the hearing, it conceded the claim for “bad debt” and pressed for the claim for “business loss”. HELD dismissing the appeal:
The claim regarding “business loss” cannot be entertained because, though the CIT (A) has dealt with the issue, there is no specific ground. The claim is also not maintainable under Rule 27 since that applies only to a Respondent in the appeal.