https://www.taxtmi.com/caselaws?id=235291 Under the mercantile system, interest earlier credited as income may be deducted when later written off as irrecoverable in the accounts. The Tribunal treated the write-off as a reversal of income after settlement or waiver affected recoverability, rather than a fresh claim for expenditure. Applying the amended section 36(1)(vii), the governing principle was that a debt written off in the books is sufficient and the Assessing Officer need not establish actual irrecoverability. On that basis, the deduction was upheld and the Revenue's challenge failed. en-us Tue, 16 Apr 2013 00:00:00 +0530 Thu, 18 Jul 2013 07:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=235291 Under the mercantile system, interest earlier credited as income may be deducted when later written off as irrecoverable in the accounts. The Tribunal treated the write-off as a reversal of income after settlement or waiver affected recoverability, rather than a fresh claim for expenditure. Applying the amended section 36(1)(vii), the governing principle was that a debt written off in the books is sufficient and the Assessing Officer need not establish actual irrecoverability. On that basis, the deduction was upheld and the Revenue's challenge failed. Case-Laws Income Tax Tue, 16 Apr 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=235291