NBFC Loan to its Sister Concern is for Mere Shift of Funds from One Entity to Another: ITAT rejects Bad Debt Claim

The ITAT rejected an NBFC's claim for bad debt on a loan given to its sister concern, ruling that the transaction was a mere shift of funds within the same group. The tribunal emphasized that such intra-group transactions do not qualify as bad debts under the Income Tax Act. This decision underscores the scrutiny of related-party transactions and the necessity of substantiating bad debt claims with appropriate evidence.