Bad debt exclusion clarified: provision for bad and doubtful debts not treated as bad debt for deduction. The amendment specifies that any bad debt or part thereof written off as irrecoverable in the assessee's accounts shall not include any provision for bad and doubtful debts made in the accounts of the assessee, thereby distinguishing actual write offs from accounting provisions for the purposes of clause (vil) of section 36(1).
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Provisions expressly mentioned in the judgment/order text.
Bad debt exclusion clarified: provision for bad and doubtful debts not treated as bad debt for deduction.
The amendment specifies that any bad debt or part thereof written off as irrecoverable in the assessee's accounts shall not include any provision for bad and doubtful debts made in the accounts of the assessee, thereby distinguishing actual write offs from accounting provisions for the purposes of clause (vil) of section 36(1).
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