https://www.taxtmi.com/caselaws?id=190462 A genuine subsequent agreement can extinguish part of an earlier recoverable debt and render the foregone balance irrecoverable for bad debt purposes. The assessee had advanced money in its money-lending business, the debt being secured by usufructuary mortgage, and later entered into a bona fide reworked settlement after the Madras Agriculturists Debt Relief Act, 1938 came into force. Under that revised bargain, the assessee accepted a reduced amount in full discharge of the mortgage debt, so the balance ceased to be recoverable independently of any inquiry into the debtor's solvency. The statutory conditions for deduction as a bad debt were therefore satisfied, and the deduction was held allowable. en-us Mon, 08 Feb 1960 00:00:00 +0530 Thu, 16 Feb 2017 17:17:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=190462 A genuine subsequent agreement can extinguish part of an earlier recoverable debt and render the foregone balance irrecoverable for bad debt purposes. The assessee had advanced money in its money-lending business, the debt being secured by usufructuary mortgage, and later entered into a bona fide reworked settlement after the Madras Agriculturists Debt Relief Act, 1938 came into force. Under that revised bargain, the assessee accepted a reduced amount in full discharge of the mortgage debt, so the balance ceased to be recoverable independently of any inquiry into the debtor's solvency. The statutory conditions for deduction as a bad debt were therefore satisfied, and the deduction was held allowable. Case-Laws Income Tax Mon, 08 Feb 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=190462