Disallowance of loans and advances written off as bad debts
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 May 2013
This is the case of a listed public limited company. The company decided to write off an advance of Rs. 700,000/- grouped under (Loans and advances) given during the year and the same was approved through a board resolution. The corresponding debit was given to Bad debts written off a/c. Now, the question arises as to whether this is an allowable expenditure under sec36 of the IT act as the advance given was not in the nature of trade advance.
Guest
Guest
(Expert)
24 May 2013
If the loan granted was not in the nature of trade advance, moreover if the company is not a financial institution.
In that case, the company can not claim such written off expenditure as allowable expenditure under the income tax act.
No section will allow such admissibility.
In that case, the company can not claim such written off expenditure as allowable expenditure under the income tax act.
No section will allow such admissibility.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Query on effect of registration of property
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Additional trade name
- Number of years as per AS amortisation of Goodwill
- Wrong CMPo8 file
- Equity Share Sale and Purchase
- Visiting card purchase
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Whether output tax is taken credit by purchaser
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
