Can someone provide me with a case law or clarification on the Foll:
XYZ. Co has booked income on accrual basis in april 2010 from M/s ABC Ltd. However during the year it comes to know that it will not be able to receive the same & accordingly at the year end, the Co has shown the amt as a Bad debts in the same year. Can the Co writeoff the amt as a bad debt for which income is shown in the same year. Alternatively the Co could have reversed the income entry, but it has not done so. Can the AO disallow the bad debt amt in Assessment.
Provide case laws if any.
CAclubindia
