I have lent an unsecured advance to a partnership firm which is loss-making now and filed a insolvency petition in the court. It is almost certain my money will not get repaid as the firm holds no assets in the balance sheet. Lending money is not my business activity.
Please advise can I claim deduction towards the write-off of the unsecured advance on which I have declared interest income under the head 'Income from other sources' in earlier years when the loan was performing and active?
CAclubindia
