Held  the Tribunal noted that there was no dispute to the fact that the debt was actually written off in the books of account in the AY under consideration namely, 2005-06. The Tribunal took note of the terms of the agreement between the parties and also the facts that the bad debts claimed by the assessee in the year under consideration were recovered in the subsequent AY 2006-07 and offered for taxation which fact could not be denied by the Revenue. The bad debt was deductible.(AY. 2005-06)