https://www.taxtmi.com/caselaws?id=166486 For bad debt allowance under Section 10(2)(xi) of the Income-tax Act, 1922, the decisive question is when the debt became irrecoverable in the Income-tax Officer's estimation, subject to the amount actually written off in the books. Actual prior write-off is not an absolute prerequisite. The assessee's own accounting treatment, including crediting sums to an interest reserve account and reducing the debt in the balance sheet, was relevant evidence that part of the debt had already become doubtful in earlier years. On that basis, the restricted allowance was upheld and the full claim was rejected. en-us Wed, 13 May 1953 00:00:00 +0530 Mon, 29 Sep 2014 10:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=166486 For bad debt allowance under Section 10(2)(xi) of the Income-tax Act, 1922, the decisive question is when the debt became irrecoverable in the Income-tax Officer's estimation, subject to the amount actually written off in the books. Actual prior write-off is not an absolute prerequisite. The assessee's own accounting treatment, including crediting sums to an interest reserve account and reducing the debt in the balance sheet, was relevant evidence that part of the debt had already become doubtful in earlier years. On that basis, the restricted allowance was upheld and the full claim was rejected. Case-Laws Income Tax Wed, 13 May 1953 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=166486