https://www.taxtmi.com/caselaws?id=9311 An earlier expenditure does not become a deductible bad debt or trading loss merely because the assessee later credits it as recoverable and writes it off in the books. The High Court noted that the amount was originally expenditure, not an admitted debt owed to the assessee, and a unilateral book entry could not create a subsisting liability. As no enforceable debt existed, the later rejection of the claim did not convert it into a bad debt, and the write-off did not make it a trading loss of the year. The deduction was therefore disallowed. en-us Thu, 20 Sep 1973 00:00:00 +0530 Fri, 03 Jan 2020 09:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9311 An earlier expenditure does not become a deductible bad debt or trading loss merely because the assessee later credits it as recoverable and writes it off in the books. The High Court noted that the amount was originally expenditure, not an admitted debt owed to the assessee, and a unilateral book entry could not create a subsisting liability. As no enforceable debt existed, the later rejection of the claim did not convert it into a bad debt, and the write-off did not make it a trading loss of the year. The deduction was therefore disallowed. Case-Laws Income Tax Thu, 20 Sep 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9311