Madras High Court Allows Appeal in Income Tax Case — Advances Written Off as Business Loss Under Section 37(1) Allowed Despite Bad Debt Claim Under Section 36(1)(vii) Being Time-Barred. Court holds that advances given in the course of construction business which become irrecoverable and written off in books of account are allowable as business loss under Section 37(1) of the Income Tax Act, 1961, even if the claim under Section 36(1)(vii) fails due to non-compliance with Section 36(2)....
The appellant, M/s. Deccan Estates, a builder, entered into a joint venture agreement on 10.12.1995 with landowners for development of a property named 'Deccan Enclave'. In the financial year relevant...
