Bad debts - Whether claims of banks should be automatically allowed in their entirety in their assessments under clause (vii) of sub-section (1)

Bad debts - Whether claims of banks should be automatically allowed in their entirety in their assessments under clause (vii) of sub-section (1) https://www.taxtmi.com/circulars?id=4429 Banks' bad-debt deductions are not automatically allowed; the Income-tax Officer must decide if a debt is irrecoverable by considering relevant facts. While banks write off or provide for doubtful debts under company and banking law, tax relief is permitted only to the extent debts are shown irrecoverable. Audit or directors' certificates are not universally conclusive; officers may accept such certificates in appropriate cases but retain discretion to call for further evidence and to select significant items for enquiry rather than examine every entry. en-us Fri, 13 Jun 1969 00:00:00 +0530 Sat, 09 Aug 2008 10:47:00 +0530 TaxTMI RSS Generator Bad debts - Whether claims of banks should be automatically allowed in their entirety in their assessments under clause (vii) of sub-section (1) https://www.taxtmi.com/circulars?id=4429 Banks' bad-debt deductions are not automatically allowed; the Income-tax Officer must decide if a debt is irrecoverable by considering relevant facts. While banks write off or provide for doubtful debts under company and banking law, tax relief is permitted only to the extent debts are shown irrecoverable. Audit or directors' certificates are not universally conclusive; officers may accept such certificates in appropriate cases but retain discretion to call for further evidence and to select significant items for enquiry rather than examine every entry. Circulars Income Tax Fri, 13 Jun 1969 00:00:00 +0530 https://www.taxtmi.com/circulars?id=4429