https://www.taxtmi.com/caselaws?id=10410 An irrecoverable balance arising from an arbitral award can qualify as a bad debt under section 36(1)(vii) read with section 36(2) of the Income-tax Act, 1961 where the amount had been recorded in the books and earlier taxed. Mere acceptance of the award through a recognised process does not, by itself, amount to waiver or abandonment of the claim. The relevant distinction is between surrendering a claim and failing to realise an amount that becomes irrecoverable after lawful recovery efforts are exhausted. On the stated facts, no collusion or frivolous acceptance was found, and the irrecoverable portion was treated as allowable as a bad debt. en-us Tue, 01 Feb 2005 00:00:00 +0530 Wed, 15 Jul 2009 12:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10410 An irrecoverable balance arising from an arbitral award can qualify as a bad debt under section 36(1)(vii) read with section 36(2) of the Income-tax Act, 1961 where the amount had been recorded in the books and earlier taxed. Mere acceptance of the award through a recognised process does not, by itself, amount to waiver or abandonment of the claim. The relevant distinction is between surrendering a claim and failing to realise an amount that becomes irrecoverable after lawful recovery efforts are exhausted. On the stated facts, no collusion or frivolous acceptance was found, and the irrecoverable portion was treated as allowable as a bad debt. Case-Laws Income Tax Tue, 01 Feb 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10410