PCIT v. United Spirits Ltd. (2022) 442 ITR 451 / 284 Taxman 568 (Kar.)(HC)

S. 36(1)(vii) : Bad debt-Amount written off-Matter remanded for verification.

Allowing the appeal of the revenue Court held that  where assessee had written off certain amount as bad debt in its books of account by way of a debit to profit and loss account, assessee was also required to simultaneously reduce corresponding amount from loans and advances or debtors depicted on assets side in balance sheet at end of year so as to be entitled to claim. Matter remanded. (AY. 2005-06)