Deduction for doubtful debts: tax officers to sympathetically assess claims against taken over textile mills. Debts owed by textile mills taken over by State corporations may be doubtful rather than strictly bad where statutory provisions bar suits or stay remedies; legislative history suggests Section 36(1)(vii) should be read to permit allowance for doubtful debts. Income tax officers are directed to examine supplier claims sympathetically, assessing the mill's financial position, chance of recovery and other relevant circumstances before allowing deductions for such doubtful debts.
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Provisions expressly mentioned in the judgment/order text.
Deduction for doubtful debts: tax officers to sympathetically assess claims against taken over textile mills.
Debts owed by textile mills taken over by State corporations may be doubtful rather than strictly bad where statutory provisions bar suits or stay remedies; legislative history suggests Section 36(1)(vii) should be read to permit allowance for doubtful debts. Income tax officers are directed to examine supplier claims sympathetically, assessing the mill's financial position, chance of recovery and other relevant circumstances before allowing deductions for such doubtful debts.
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