Dismissing the appeals of the revenue the Court held that the Tribunal had recorded from the materials on record that admittedly, the debt in question had been written off as irrecoverable in the accounts of the assessee. The requirement of S. \u00a036(1)(vii)\u00a0had been complied with and the amount covered by the bad debts would be entitled to be deducted while computing income under S\u00a028(i) of the Act \u00a0.\u00a0 There was no requirement under the Act that the bad debt had to accrue out of income under the same head, i. e., \u201cIncome from business or profession\u201d to be eligible for deduction. All that was required was that the debt in question must be written off by the assessee in its books of account as irrecoverable. ( AY.2001-02, 2003-04)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 36(1)(vii) :Bad debt -Law after 1-4-1989 \u2014 Not necessary to establish or prove that debt has become irrecoverable \u2014 Recording of debt as bad debt in books of account is sufficient. [ S.28(i)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-12611","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3hp","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12611","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=12611"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12611\/revisions"}],"predecessor-version":[{"id":16086,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12611\/revisions\/16086"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=12611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=12611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=12611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}