https://www.taxtmi.com/caselaws?id=175371 Bad debt deduction depends on whether the debt in fact became irrecoverable in the relevant accounting year, because profits are computed on the basis of that year as a self-contained period. An assessee cannot unilaterally decide when a debt became bad, and a debt that had already become bad before the accounting year is not deductible in that year. The question when a debt became bad is one of fact for the tribunal, determined on all relevant evidence. Mere age of the debt or the fact that it is statute-barred does not by itself establish that it is bad. en-us Tue, 26 Apr 1932 00:00:00 +0530 Wed, 25 Jan 2017 11:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=175371 Bad debt deduction depends on whether the debt in fact became irrecoverable in the relevant accounting year, because profits are computed on the basis of that year as a self-contained period. An assessee cannot unilaterally decide when a debt became bad, and a debt that had already become bad before the accounting year is not deductible in that year. The question when a debt became bad is one of fact for the tribunal, determined on all relevant evidence. Mere age of the debt or the fact that it is statute-barred does not by itself establish that it is bad. Case-Laws Income Tax Tue, 26 Apr 1932 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=175371