https://www.taxtmi.com/caselaws?id=166477 Whether a debt has become bad is a question of fact, determined by the real possibility of recovery and the evidence available, not by the creditor's unilateral write-off or book entries alone. On the facts, sale of the debtor's only known asset in S. Y. 1996 left no reasonable prospect of recovery, so the debt became irrecoverable in that year. The later transfer entry in S. Y. 1997, payment of tax on interest, and limitation considerations did not shift the bad-debt date. The finding was upheld in favour of the Revenue, and the assessee could not treat the debt as bad in S. Y. 1997. en-us Fri, 26 Mar 1954 00:00:00 +0530 Sat, 27 Sep 2014 12:28:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=166477 Whether a debt has become bad is a question of fact, determined by the real possibility of recovery and the evidence available, not by the creditor's unilateral write-off or book entries alone. On the facts, sale of the debtor's only known asset in S. Y. 1996 left no reasonable prospect of recovery, so the debt became irrecoverable in that year. The later transfer entry in S. Y. 1997, payment of tax on interest, and limitation considerations did not shift the bad-debt date. The finding was upheld in favour of the Revenue, and the assessee could not treat the debt as bad in S. Y. 1997. Case-Laws Income Tax Fri, 26 Mar 1954 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=166477