Assessee was engaged in business of manufacturing and trading of electronic goods and developmental activities. The assessee has written off the loan in the books of account as bad debt. Assessing Officer held that the assessee was not a bank or a money lender, hence not entitled to write off outstanding loan amount and claim deduction under section 36(2) or under section 37(1) of the Act.  Order of the Assessing Officer was affirmed by the Appellate Tribunal. On appeal it was contended that MOA that objects of assessee included money lending and it was engaged in lending business since financial year 2004-05.  Also schedule of loans and advances in books of account of assessee was a continuing feature in all previous years which had been accepted and taxed by revenue as part of business income. Allowing the appeal the Court held that holding of money lending licence was not a prerequisite for allowing a claim of bad debts, it was enough if irrecoverable debt was written off in books of account. Since, claim of assessee under section 37(1) had not been examined, matter was to be remitted to Tribunal for fresh decision.  (AY. 2010-11)