https://www.taxtmi.com/caselaws?id=13471 The Tribunal ruled in favor of the assessed company, affirming the allowability of the bad debts under Section 36(1)(vii) and Section 36(2) of the Income Tax Act. It concluded that the company made an honest judgment regarding the irrecoverability of debts, supported by proactive legal actions against the debtor. The Tribunal emphasized the relevance of Circular Number 551, which clarified that debts written off in the accounts could be treated as irrecoverable. The case was dismissed, aligning with previous judicial decisions and eliminating disputes over the timing of bad debt allowance. en-us Thu, 07 Dec 2006 00:00:00 +0530 Sat, 10 Feb 2024 13:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13471 The Tribunal ruled in favor of the assessed company, affirming the allowability of the bad debts under Section 36(1)(vii) and Section 36(2) of the Income Tax Act. It concluded that the company made an honest judgment regarding the irrecoverability of debts, supported by proactive legal actions against the debtor. The Tribunal emphasized the relevance of Circular Number 551, which clarified that debts written off in the accounts could be treated as irrecoverable. The case was dismissed, aligning with previous judicial decisions and eliminating disputes over the timing of bad debt allowance. Case-Laws Income Tax Thu, 07 Dec 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13471