Dismissing the appeal of the Revenue the Court held that the amounts claimed as bad debts had been taken into account in computing income of assessee in previous year and offered for taxation and unrecovered amounts had been written off in books of account, claim of assessee could not be disallowed merely because debtor had shown amount as liability in its books of account. (AY.2008-09)
PCIT v. Nilgiri Financial Consultants Ltd. (2022) 289 Taxman 115 (Delhi)(HC)
S. 36(1)(vii) : Bad debt-Amount offered as income-Written as bad debt in books of account-Debtor has shown as liability in its books of account-Allowable as deduction as bad debt. [S. 36(2)]