Dismissing the appeals of the revenue the Court held that the Tribunal had recorded from the materials on record that admittedly, the debt in question had been written off as irrecoverable in the accounts of the assessee. The requirement of S.  36(1)(vii) had been complied with and the amount covered by the bad debts would be entitled to be deducted while computing income under S 28(i) of the Act  .  There was no requirement under the Act that the bad debt had to accrue out of income under the same head, i. e., “Income from business or profession” to be eligible for deduction. All that was required was that the debt in question must be written off by the assessee in its books of account as irrecoverable. ( AY.2001-02, 2003-04)