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Bad debt eligibility

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(Querist)
14 May 2016 Mr. X has given a Loan to a Pvt Ltd. Co. Now, the balance loan is not recoverable from the Company. Also Mr. X has sold a land & has realised gain on the sale in the same year.
Whether Mr. X can set off the loss on non-recovery of Loan with gain on sale of Land?

Please guide.

Thank you
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CA VISHNU GAVKARE

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CA VISHNU GAVKARE (Expert)
15 May 2016 Dear Devendra,
Both transaction falls in separate head of Income. Since amount is not recoverable it will be allowed as deduction in BP. Assuming there is no other transaction in BP the same will amount to loss. As per set of provisions Business loss can be set off against business income hence you can set off the bad debts against capital Gain.
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CA.Karan Dawar

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CA.Karan Dawar (Expert)
16 May 2016 agree with the expert needs no further explanation I feel
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