https://www.taxtmi.com/caselaws?id=166476 Whether a debt written off is deductible under section 10(2)(xi) turns on whether the creditor could honestly conclude the debt was irrecoverable; the statutory test requires an honest conviction based on the debtor's pecuniary position and contemporaneous circumstances. The analysis emphasises that a creditor's later conduct and subsequent facts may be admissible to show the creditor lacked that honest belief at the time of writing off. Applying these principles to the facts given-debtor remained active, received further advances, held assets, and later receipts were credited-the write off could not be regarded as an honestly estimated irrecoverable debt and thus was not allowable. en-us Mon, 11 Mar 1963 00:00:00 +0530 Sat, 27 Sep 2014 12:22:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=166476 Whether a debt written off is deductible under section 10(2)(xi) turns on whether the creditor could honestly conclude the debt was irrecoverable; the statutory test requires an honest conviction based on the debtor's pecuniary position and contemporaneous circumstances. The analysis emphasises that a creditor's later conduct and subsequent facts may be admissible to show the creditor lacked that honest belief at the time of writing off. Applying these principles to the facts given-debtor remained active, received further advances, held assets, and later receipts were credited-the write off could not be regarded as an honestly estimated irrecoverable debt and thus was not allowable. Case-Laws Income Tax Mon, 11 Mar 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=166476