https://www.taxtmi.com/caselaws?id=189060 A cash-credit entry cannot be assessed as unexplained income unless there is material supporting the inference that it represents the assessee's income; where the adverse finding rests on a misreading of accounts and the withdrawals and later introductions substantially tally, the addition fails. A debt is allowable as a bad debt when it becomes irrecoverable in the relevant accounting year; time-barred status is relevant but not decisive, and earlier recovery efforts do not prevent allowance if the final execution fails during that year. On these principles, both disputed additions were not sustainable against the assessee. en-us Thu, 30 Apr 1953 00:00:00 +0530 Wed, 03 Oct 2018 14:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=189060 A cash-credit entry cannot be assessed as unexplained income unless there is material supporting the inference that it represents the assessee's income; where the adverse finding rests on a misreading of accounts and the withdrawals and later introductions substantially tally, the addition fails. A debt is allowable as a bad debt when it becomes irrecoverable in the relevant accounting year; time-barred status is relevant but not decisive, and earlier recovery efforts do not prevent allowance if the final execution fails during that year. On these principles, both disputed additions were not sustainable against the assessee. Case-Laws Income Tax Thu, 30 Apr 1953 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=189060