Rejecting assessee's claim for write off of said amount under section 36(1)(vii)

IT: Where assessee could not recover amount advanced to associate company on account of security scam, since said event could not be foreseen, Assessing Officer was not justified in rejecting assessee's claim for write off of said amount under section 36(1)(vii) taking a view that loan was not given in ordinary course of business
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[2014] 48 taxmann.com 323 (Bombay)
HIGH COURT OF BOMBAY
Director of Income-tax (International Taxation)
v.
Deutche Bank A.G.*
M. S. SANKLECHA AND G.S. KULKARNI, JJ.
IT APPEAL NO. 234 OF 2011†
JULY  7, 2014
Section 36(1)(vii) of the Income-tax Act, 1961 - Bad debts (Loan advanced to associate company) - Assessment year 1993-94 - During relevant year assessee wrote off advance made to associate company - Assessing Officer opined that amount was advanced by assessee even though it was aware that financial position of associate company was not sound - He thus taking a view that advances were not given in ordinary course of business, rejected assessee's claim - Commissioner (Appeals), however, noted that advance made to associate company was lost only on account of security scam and since said event could not be foreseen, assessee claim was to be allowed - Tribunal confirmed order of Commissioner (Appeals) - Whether since findings recorded by authorities below were concurrent findings of fact, same did not require any interference - Held, yes [Para 8] [In favour of assessee]