Jay Ashkaran Shah v. ITO (2021) 190 ITD 208 (Mum.)(Trib.)

S. 36(1)(vii) : Bad debt-Trading commodities-Amount not recoverable was written off-Allowable as bad debt-Matter remanded.

Due to sudden closure of trading, assessee could not recover outstanding payments to extent of certain amount from brokers. The   Assessee claimed the said amount as bad debt.  The Assessing Officer disallowed the amount as premature. On appeal the Tribunal held that it was sufficient if bad debts were written off as irrecoverable in accounts of assessee. Matter remanded.  (AY. 2014-15)