Dismissing the appeal of the revenue the Court held that the bad debts or part thereof were taken into account in computing income of the assessee for an earlier assessment year before such debt or part thereof was written off was satisfied. Order of Tribunal is affirmed .Referred CIT v. Pudumjee Pulp and Paper Mills Ltd I.T.A No. 1590 of 2013 dated 5-8 2015 ( Bom ) (HC) , CIT v. Shreyas S. Morakhia ( 2012 ) 342 ITR 285 ( Bom) ( HC) ( AY.2005-06)
PCIT v . Mahindra Engineering and Chemical Products Ltd. (2021)439 ITR 399 (Bom) (HC)
S. 36(1)(vii) :Bad debt – Advances made in the course of business – Interest income was assessed as business income in earlier year- Advances written off – Allowable as bad debt . [. S.36(2)(i), 37 (1) ]