Held that the assessee is not having any business income and in last balance-sheet not having any debtors. Advances given to land owners with whom transaction did not materialise is written off as bad debt. Tribunal held that mere write-off of advances for purchase of property would not fall under bad debts. Not allowable as deduction. (AY.2014-15)
Alpha Reality v. Asst. CIT (2023)108 ITR 7 (SN)(Chennai) (Trib)
S. 36(1)(vii) : Bad debt-Advance to purchase of property-Mere write-off of advances for purchase of property is not allowable as bad debt. [S. 36(2)]