Held that\u00a0 allowing the appeal, that the assessee-firm was formed under a deed which specified its business of financiers. Merely because the parties were related parties, the loss incurred by the assessee by writing off of the sum could not be disallowed when there was no evidence of any collusion. Therefore, in view of the overwhelming evidence, such as the ledger account of the borrower showing advance of Rs. 10 crores, proof of earning interest income, repayment of sum, outstanding remaining of Rs. 2 crores, such sum being written off in the books of account, object of the partnership deed and past assessment records of the assessee, merely using the statement of the partner against the assessee for disallowance was not justified. The assessee having satisfied all the conditions of section\u00a036(1)(vii)\u00a0read with section\u00a036(2)\u00a0of the Act, the claim of the assessee was allowable. (AY.2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 36(1)(vii) : Bad debt-Finance business-Interest income assessed as business income-Merely because parties related, Loss written off could not be disallowed. [S. 36(2)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-28862","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-7vw","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/28862","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=28862"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/28862\/revisions"}],"predecessor-version":[{"id":28863,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/28862\/revisions\/28863"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=28862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=28862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=28862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}