Court held that the write-off of a trade advance made to a group company, which had been declared a sick company and where recovery was doubtful, was held to be an allowable deduction. The High Court noted that the Tribunal had found the decision to write off the advance was based on commercial expediency. Order of Tribunal affirmed. (AY. 2013-14)
PCIT v. Natroyal Industries (P.) Ltd. [2024] 159 taxmann.com 448 (Bom.) (HC)
S. 37(1) : Business expenditure –Business loss-Write-off of a trade advance based on commercial expediency is an allowable deduction. [S. 28(i), 28(iv), 260A]
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