Assessee-company gave certain advance to its subsidiary company to acquire development rights of a property. Assessee offered interest income on said advance to tax on year to year basis. Subsequently, on account of failure of subsidiary company to repay advance money, assessee  wrote off the amount as bad debts. The AO held that  the assessee had never credited advance money to its profit and loss account in any of years  hence rejected its claim. Tribunal held that on facts, income offered by assessee in form of interest itself formed part of entire debt owned by assessee and since assessee had offered to tax a part of debt, requirement of S. 36(2) stood satisfied and assessee became eligible to claim deduction. Followed  CIT v. T. Veerabhadra Rao  (1985) 155 ITR 152 (SC) (AY. 2004-05)