Whether writing of bad debts in accounts sufficient to claim deduction u/s 36(1)(vii) of IT Act 1961
Court :
Supreme Court of India
Brief :
he position in law is well-settled. After 1.4.1989, it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable. It is enough if the bad debt is written off as irrecoverable in the accounts of the assessee. When a bad debt occurs, the bad debt account is debited and the customer’s account is credited, thus, closing the account of the customer. In the case of companies, the provision is deducted from Sundry Debtors.
Citation :
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FCS Deepak Pratap Singh
Published in Income Tax
Views : 279
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