Where the assessee made a provision for bad and doubtful debt on an ad-hoc basis in accordance with the statute dealing with the business of the assessee then the same is not allowable as a deduction since it is at most an unascertained liability and it is not clear for which particular account the provision is made. (AY: 2006-2007)
Tamil Nadu Generation and Distribution Corporation Ltd. v. ACIT (2022) 217 TTJ 108/ 213 DTR 313 (Chennai) (Trib)
S. 36(1)(viia) : Bad debt-Provision for bad and doubtful debts-Schedule bank-Mere provision of bad and doubtful debts when the same is made on an ad hoc basis will not constitute a write-off to claim deduction.