https://www.taxtmi.com/caselaws?id=76254 The High Court held that under section 36(1)(vii) of the Income-tax Act, a provision for bad debts should be viewed as an actual write-off, requiring specific evidence of debt write-off rather than just creating a bad debt reserve account. The court emphasized that the provision for bad debts must involve a genuine write-off and not merely a provision for non-performing assets. Despite the Assessing Officer and first appellate authority's findings being overturned, the Tribunal ruled in favor of the Revenue, stating that there was a legitimate write-off of bad debts. The court upheld this decision, emphasizing the retrospective effect of the Explanation to section 36(1)(vii) from 1989. en-us Thu, 02 Apr 2009 00:00:00 +0530 Thu, 17 Jun 2010 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=76254 The High Court held that under section 36(1)(vii) of the Income-tax Act, a provision for bad debts should be viewed as an actual write-off, requiring specific evidence of debt write-off rather than just creating a bad debt reserve account. The court emphasized that the provision for bad debts must involve a genuine write-off and not merely a provision for non-performing assets. Despite the Assessing Officer and first appellate authority's findings being overturned, the Tribunal ruled in favor of the Revenue, stating that there was a legitimate write-off of bad debts. The court upheld this decision, emphasizing the retrospective effect of the Explanation to section 36(1)(vii) from 1989. Case-Laws Income Tax Thu, 02 Apr 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=76254