https://www.taxtmi.com/caselaws?id=280215 A bad-debt deduction is allowable only in the year in which the loss was actually incurred and as part of the correct computation of that year's profits. A debt that had already become bad before the accounting year cannot be deducted merely because it was written off later. Whether a debt is bad, and when it became bad, is a question of fact to be decided on the evidence by the proper taxing authority or tribunal; time-bar alone does not prove that the debt is bad or fix the date of loss. The assessee therefore had no unilateral option to choose the timing of the deduction, and the disallowance was upheld. en-us Tue, 26 Apr 1932 00:00:00 +0530 Thu, 25 Apr 2019 12:07:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=280215 A bad-debt deduction is allowable only in the year in which the loss was actually incurred and as part of the correct computation of that year's profits. A debt that had already become bad before the accounting year cannot be deducted merely because it was written off later. Whether a debt is bad, and when it became bad, is a question of fact to be decided on the evidence by the proper taxing authority or tribunal; time-bar alone does not prove that the debt is bad or fix the date of loss. The assessee therefore had no unilateral option to choose the timing of the deduction, and the disallowance was upheld. Case-Laws Income Tax Tue, 26 Apr 1932 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=280215