Amounts written off bad debts in its books of account from individual ledgers of borrowers/defaulters and same is also reflected in the corresponding ‘loans and advances (NPA) account and ‘interest receivable’ accounts in the balance sheet, assessee was entitled to deduction. (AY. 2010 -11)
Malad Sahakari Bank Ltd. v. DCIT (2019) 176 ITD 438/ 182 DTR 350 (Mum.) (Trib.)
S. 36(1)(vii) : Bad debt-Amounts written off of bad debts-Entitle to deduction. [S. 36(2)]