Held that the bad debt is allowable as deduction provided interest income was offered for taxation in earlier years. Similarly the referral fee paid to group entity is allowable as deduction. Matter remanded to CIT(A) for verification. (AY. 2014-15)
Monarch Networth Finserve P. Ltd. v. ITO (2021) 89 ITR 50 (SMC) (SN) (Mum.)(Trib.)
S. 36(1)(vii) : Bad debt-Non-banking finance company-Interest income offered to tax in earlier years-Referral fee paid to group entity-Matter remanded for verification. [S. 37(1)]