Assessee was an investment company. One of companies promoted by assessee was  Balaji Industraial Corporation of india Ltd (BICL). BICL availed a loan from ICICI. As one of conditions required for disbursing loan, assessee, being promoter of BICL, had to pledge shares held by it in another company, to ensure asset coverage of 1.5 times of loan sanctioned by ICICI and guarantee assistance on market value basis. Accordingly, assessee pledged equity shares. Over a period, BICL was unable to repay its loan to ICICI.ICICI, to recover amount that was payable to it by BICL, under terms and conditions of loan and guarantee given by assessee, sold out of shares pledged, certain equity shares at prevailing market value. Accordingly, assessee accounted for dues from BICL to ICICI. BICL paid only Rs. 1 crore to assessee and assessee accepted same in full and final settlement of outstanding amount. Unpaid amount, assessee decided to write it off as bad debts in books of account. Assessing Officer disallowed this write-off. Tribunal accepted assessee’s claim. On appeal the Court held that  loss incurred by assessee was for business expediency of group company hence  such loss/debt should be treated as having been incurred for purpose of business and directly relatable to business of assessee and  eligible for deduction as loss or bad debt. (AY. 2009-10)