https://www.taxtmi.com/caselaws?id=10602 The court held that the assessee's claim for bad debts was not allowable as the debts were not actually written off as irrecoverable in the accounts for the previous year, as required by section 36(1)(vii) of the Income-tax Act. The Tribunal's decision to allow the claim based on the provision shown under 'Expenditure' was deemed insufficient, emphasizing the necessity of an actual write-off. It was clarified that the provision for bad debts alone does not meet the statutory requirement for deduction. The court ruled in favor of the Department, setting aside the Tribunal and Commissioner's decisions, and restoring the Assessing Officer's order. en-us Wed, 06 Jul 2005 00:00:00 +0530 Sun, 19 Jul 2009 12:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10602 The court held that the assessee's claim for bad debts was not allowable as the debts were not actually written off as irrecoverable in the accounts for the previous year, as required by section 36(1)(vii) of the Income-tax Act. The Tribunal's decision to allow the claim based on the provision shown under 'Expenditure' was deemed insufficient, emphasizing the necessity of an actual write-off. It was clarified that the provision for bad debts alone does not meet the statutory requirement for deduction. The court ruled in favor of the Department, setting aside the Tribunal and Commissioner's decisions, and restoring the Assessing Officer's order. Case-Laws Income Tax Wed, 06 Jul 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10602