Dismissing the appeal of the revenue the Court held that , where monies were advanced through the mechanism of equity participation, the intention of the assessee was to derive income rather than to increase its investment on the capital side. If it were profits with the assessee from the investment it would have been on the revenue side of income and since it was the converse, the losses were properly and rightly claimed as bad debts by the assessee. Referred Badridas Daga v. CIT ( 1958) 34 ITR 10 (SC) and Associated Banking Corporation of India Ltd v.CIT ( 1956) 56 ITR 1 ( SC)
CIT v. Industrial Finance Corporation Of India Ltd. (2018) 404 ITR 629 (Delhi) (HC) Editorial: SLP of revenue is dismissed , CIT v. Industrial Finance Corporation Of India Ltd. (2018) 401 ITR 171 (St.)(SC)
S. 36(1)(vii) :Bad debt -Business loss- Finance company -Advances in form of equity participation to derive income Investment written off is allowable as bad debts . [ S.28(i)]