[aaykarbhavan] Loss on assignment of debt wasn’t deductible as assessee was giving loan to affiliate when it was incurring losses

Loss on assignment of debt wasn't deductible as assessee was giving loan to affiliate when it was incurring losses

November 18, 2014[2014] 50 taxmann.com 198 (Bombay)/[2014] 226 Taxman 153 (Bombay)(MAG.)

IT: Where assessee having assigned amount recoverable from sister concern to another company, claimed deduction of loss incurred on assignment of debt, in view of fact that assessee kept giving loan to sister concern even when it was continuously making loss, Tribunal rightly concluded that transaction of assignment of debt was not entered into normal course of business and, thus, assessee's claim was to be rejected

 

Regards

Prarthana Jalan

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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>

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