Advances given to various parties for purchase of goods, electrical installation, consumable stores which have nexus with business hence allowable as business loss . (AY .2006 – 2007 to 2008-2009)
Dy. CIT v. Mcnally Bharat Engineering Co. Ltd. (2018) 191 TTJ 822 (Kol.)(Trib.)
S.28(i) : Business loss – Advance made to parties for purchase of goods, consumables which are written off in the books is held to be allowable as business loss.