https://www.taxtmi.com/caselaws?id=186012 A bad debt is deductible once it is written off as irrecoverable in the accounts, and after 1 April 1989 it is unnecessary to prove actual irrecoverability; the claim was also supported by section 36(2) because the relevant amounts had earlier been taken into account in computing income. In broker-client transactions, brokerage credited to the profit and loss account satisfied the statutory condition, so the bad-debt disallowance was deleted. A disallowance under section 40(a)(i) for professional fees paid to a non-resident could not be sustained without first examining whether the remittance was chargeable to tax in India under section 195, including the nature of services, treaty position and permanent establishment; that issue was remitted for fresh adjudication. The claim relating to adjustment of earlier years' deemed speculation loss against share-trading income was also sent back for reconsideration. en-us Wed, 21 Mar 2012 00:00:00 +0530 Wed, 14 Mar 2018 10:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=186012 A bad debt is deductible once it is written off as irrecoverable in the accounts, and after 1 April 1989 it is unnecessary to prove actual irrecoverability; the claim was also supported by section 36(2) because the relevant amounts had earlier been taken into account in computing income. In broker-client transactions, brokerage credited to the profit and loss account satisfied the statutory condition, so the bad-debt disallowance was deleted. A disallowance under section 40(a)(i) for professional fees paid to a non-resident could not be sustained without first examining whether the remittance was chargeable to tax in India under section 195, including the nature of services, treaty position and permanent establishment; that issue was remitted for fresh adjudication. The claim relating to adjustment of earlier years' deemed speculation loss against share-trading income was also sent back for reconsideration. Case-Laws Income Tax Wed, 21 Mar 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=186012