Allowing the appeal of the assessee considering the commercial expediency the expenditures incurred by subsidiary till its winding up the amount disallowed as bad debt can be claimed as business loss. The Tribunal was not right in not allowing the claims of the assessee. Followed Badridas Daga v. CIT (1958) 34 ITR 10 (SC), PCIT v. Khyati Realators Pvt Ltd (2022) 447 ITR 167 (SC), distinguished. (AY.1989-90)
Mahindra And Mahindra Ltd. v CIT (2023)456 ITR 723 /151 taxmann.com 332 / 333 CTR 665(Bom)(HC)
S. 28(i) : Business loss-Bad debts-Commercial expediency-Expenditures incurred by subsidiary till its winding up-Amount disallowed as bad debt can be claimed as business loss. [S. 36(1)(vii), 36(2), 37(1)]