https://www.taxtmi.com/caselaws?id=166482 On disruption of a Hindu joint family, a money-lending debt taken over by the succeeding firm did not have to be revalued at market value merely because the debtor had already become insolvent. The recoverable amount could not be fixed by later insolvency dividends, since realisation depended on uncertain future contingencies. The debt became finally ascertainable as bad only when the Official Receiver declared the final dividend and no further recovery was expected. Accordingly, the book value need not be substituted at the date of disruption, and the bad debt was deductible only in the year it finally became irrecoverable. en-us Tue, 12 Nov 1940 00:00:00 +0530 Sat, 27 Sep 2014 13:27:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=166482 On disruption of a Hindu joint family, a money-lending debt taken over by the succeeding firm did not have to be revalued at market value merely because the debtor had already become insolvent. The recoverable amount could not be fixed by later insolvency dividends, since realisation depended on uncertain future contingencies. The debt became finally ascertainable as bad only when the Official Receiver declared the final dividend and no further recovery was expected. Accordingly, the book value need not be substituted at the date of disruption, and the bad debt was deductible only in the year it finally became irrecoverable. Case-Laws Income Tax Tue, 12 Nov 1940 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=166482