BAD DEBTS

Last updated: 24 September 2007

Court :
HC

Brief :
Held by the Hon`ble Court that, it is not necessary to establish that debt had become bad only to write it off as irrecoverable in its accounts is enough to claim deduction u/s 36(1)(vii).

Citation :
Autometers Ltd. Vs. C.I.T.

Bad Debts Autometers Ltd. Vs. C.I.T. 03/02/2007 [2007] 292 ITR 345 (Delhi) Case Fact: Whether, to claim deduction u/s 36(1)(vii) it is required to prove that debt had become bad? Decision: Held by the Hon`ble Court that, it is not necessary to establish that debt had become bad only to write it off as irrecoverable in its accounts is enough to claim deduction u/s 36(1)(vii).