https://www.taxtmi.com/caselaws?id=273180 A deduction for bad debt cannot be refused on an allegation that the assessee fraudulently postponed the write-off unless there is material evidence supporting that inference. Here, the record showed continuing uncertainty over recovery until the relevant year, and correspondence from the Official Assignee indicated that insolvency proceedings had substantially concluded with little or no prospect of a dividend for unsecured creditors. The finding of manufactured evidence and fraudulent intent was unsupported. The bad debt was therefore properly written off in the year of account, and the disallowance could not be sustained. en-us Wed, 18 Oct 1939 00:00:00 +0530 Sat, 09 Jun 2018 12:41:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=273180 A deduction for bad debt cannot be refused on an allegation that the assessee fraudulently postponed the write-off unless there is material evidence supporting that inference. Here, the record showed continuing uncertainty over recovery until the relevant year, and correspondence from the Official Assignee indicated that insolvency proceedings had substantially concluded with little or no prospect of a dividend for unsecured creditors. The finding of manufactured evidence and fraudulent intent was unsupported. The bad debt was therefore properly written off in the year of account, and the disallowance could not be sustained. Case-Laws Income Tax Wed, 18 Oct 1939 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=273180