High Court held that an amount, which is said to have been advanced for simply helping a business associate, could not constitute a debt when assessee had not placed any material to indicate that business associate or any associate of subsidiary of assessee had a legal obligation for repayment of amount. Further, amounts advanced by assessee to its business associate were more towards issue of shares in future if a company was to be brought in existence in hope of getting shares allotted in such a company, such expenditure was a capital expenditure. In absence of any material on record to support assessee’s claim that it had incurred a debt or that it had become irrecoverable for any reason, particularly after assessee had put in some efforts in that regard for recovery and had failed, conclusion of Tribunal to reverse well-considered and well-recorded findings of assessing authority and first appellate authority, on disallowing claim towards written off bad debts in terms of section 36(1)(vii), were perverse and could not be sustained. Order of High Court affirmed.\u00a0 (AY. 1996-97 & 1997-98)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 36(1)(vii): Bad debt-Advance for simply helping business associate-Advance for issue of shares-Order of High Court affirmed-Appeal dismissed.[Art. 136]<\/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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-65212","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gXO","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65212","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=65212"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65212\/revisions"}],"predecessor-version":[{"id":65213,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65212\/revisions\/65213"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=65212"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=65212"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=65212"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}