https://www.taxtmi.com/caselaws?id=166478 A debt is deductible as a bad debt in the year in which irrecoverability is shown to have arisen, and mere expiry of limitation does not by itself defeat the claim. The surrounding circumstances must be considered, and the presumption that a time-barred debt is bad remains rebuttable. On the material discussed, there was no contrary finding that the debt had become bad in an earlier year, and the prior tax treatment of interest on the debt supported the view that it remained alive until the relevant year. The assessee was therefore entitled to deduct the debt as bad debt in that assessment year. en-us Wed, 11 Oct 1933 00:00:00 +0530 Sat, 27 Sep 2014 12:53:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=166478 A debt is deductible as a bad debt in the year in which irrecoverability is shown to have arisen, and mere expiry of limitation does not by itself defeat the claim. The surrounding circumstances must be considered, and the presumption that a time-barred debt is bad remains rebuttable. On the material discussed, there was no contrary finding that the debt had become bad in an earlier year, and the prior tax treatment of interest on the debt supported the view that it remained alive until the relevant year. The assessee was therefore entitled to deduct the debt as bad debt in that assessment year. Case-Laws Income Tax Wed, 11 Oct 1933 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=166478