Held that the assessee had accounted for subsidy regularly in earlier years as well as in the year under consideration. Since the assessee had initially booked subsidy as income and the unrecovered amount was claimed as bad debts in the same year, the unrecoverable subsidy was allowable as bad debt. (AY. 2018-19)
Indian Potash Ltd. v. DCIT (2025) 214 ITD 121 (Delhi) (Trib.)
S. 36(1)(vii): Bad debt-Subsidy-Offered as income in earlier years-Unrecoverable subsidy allowable as bad debt.
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