https://www.taxtmi.com/caselaws?id=166483 Section 10(2)(xi) of the Income-tax Act was construed to require irrecoverability of the debt to the extent estimated by the Income-tax Officer before a deduction can be allowed. The distinction between bad debts and doubtful debts was treated as immaterial for the statutory allowance, because both depend on the same test of irrecoverability. A banking assessee therefore cannot claim deduction on a mere subjective doubt about recovery without satisfying the statutory requirement. On that basis, the referred question was treated as having no practical tax significance and the reference was disposed of without an answer. en-us Tue, 24 Aug 1954 00:00:00 +0530 Sat, 27 Sep 2014 13:30:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=166483 Section 10(2)(xi) of the Income-tax Act was construed to require irrecoverability of the debt to the extent estimated by the Income-tax Officer before a deduction can be allowed. The distinction between bad debts and doubtful debts was treated as immaterial for the statutory allowance, because both depend on the same test of irrecoverability. A banking assessee therefore cannot claim deduction on a mere subjective doubt about recovery without satisfying the statutory requirement. On that basis, the referred question was treated as having no practical tax significance and the reference was disposed of without an answer. Case-Laws Income Tax Tue, 24 Aug 1954 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=166483