Dismissing the appeal of the assessee the Tribunal held that, write off advances given to suppliers for purchase of raw materials is held to be not allowable as business loss as the assessee failed to produce evidence to show that the advances were paid in the ordinary course of business. (AY. 2006 -07)
Bhagwati Gases Ltd. v. DCIT (2019) 176 ITD 609 (Kol.)(Trib.)
S. 28(i) : Business loss–Advances not recoverable-Write off Advances given to suppliers for purchase of raw materials- Failure to produce evidence to show that the advances were paid in the ordinary course of business-Not allowable as business loss. [S. 36(1)(vii), 36(2)]