NBFC Loan to its Sister Concern is for Mere Shift of Funds from One Entity to Another: ITAT rejects Bad Debt Claim [Read Order]
The relationship between the lending and borrowing entities, who shared a common director, cast doubt on the legitimacy of the claimed deduction
By Varda Marakkar - On August 5, 2024 12:28 pm - 2 mins read
Recently, the Income Tax Appellate Authority ( ITAT ) of Delhi disallowed a bad debt deduction claim upholding the CIT(A)’s decision stating the loan provided by the NBFC to its sister concern was for mere shift of funds and there was no purpose shown for taking loan. The appellant/ assessee, Instronics Limited, is an Non-Bank…
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