Held that advance to subsidiary for setting up of thermal power plant. Project was rejected by Ministry of Environment and Forest. Loss written off was held to be allowable as business loss. Loss of sale of stock in trade allowable as business loss. (AY. 2011-12 to 2017-18)
Sinnar Thermal Power Ltd. v. Dy CIT (2021) 89 ITR 263 (Mum.)(Trib.)
S. 28(i) : Business loss-Advance to subsidiary-Amount written off-Allowable as business loss-Conversion of capital asset in to stock in trade-Loss on sale of stock in trade-Allowable as business loss.