During relevant financial year assessee had written off bad debts of Rs. 14.36 lakhs in profit and loss accounts. Such bad debts were shown in invoices raised on customers in previous year and was credited to accounts. Accordingly the assessee was justified in writing off bad debts during current year, considering facts that amounts were not recoverable. (AY. 2009-10)
Firemenich Aromatics (I) (P) Ltd. v. ACIT (2020) 184 ITD 43 (Mum.)(Trib.)
S. 36(1)(vii) : Bad debt-Amount written off in the books of account-Allowable as deduction. [S. 36(2)]