https://www.taxtmi.com/caselaws?id=341632 A statutory VAT refund claim arising from export sales was treated as a right that accrued on the sale but lapsed if not claimed within the prescribed period. Because the amount had been taken into account in computing earlier income and became irrecoverable by operation of law, the write-off was characterised as a bad debt rather than a business loss. The deduction was therefore allowable in principle under section 36(1)(vii) of the Income-tax Act, subject to proof that the debt had become irrecoverable by year-end and had been actually written off in the books, with the Assessing Officer required to verify those conditions. en-us Mon, 10 Apr 2017 00:00:00 +0530 Fri, 14 Apr 2017 06:58:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=341632 A statutory VAT refund claim arising from export sales was treated as a right that accrued on the sale but lapsed if not claimed within the prescribed period. Because the amount had been taken into account in computing earlier income and became irrecoverable by operation of law, the write-off was characterised as a bad debt rather than a business loss. The deduction was therefore allowable in principle under section 36(1)(vii) of the Income-tax Act, subject to proof that the debt had become irrecoverable by year-end and had been actually written off in the books, with the Assessing Officer required to verify those conditions. Case-Laws Income Tax Mon, 10 Apr 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=341632