https://www.taxtmi.com/caselaws?id=282925 A debt is not a bad debt where, at the time of writing off, the creditor retained a reasonable expectation of recovery; the legal standard requires absence of any real prospect or ray of hope to classify a sum as bad. The court applied this test to facts showing ongoing transactions after the loss, crediting hundies maturing post-year, initiation of recovery suit after the year, partial realisations and sale of security producing surplus; these facts establish continued expectation of recovery and therefore the Rs. 2,23,162 did not qualify as a bad debt in S.Y.2004 and the deduction was disallowed. en-us Thu, 26 Oct 1961 00:00:00 +0530 Sat, 31 Aug 2019 10:47:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=282925 A debt is not a bad debt where, at the time of writing off, the creditor retained a reasonable expectation of recovery; the legal standard requires absence of any real prospect or ray of hope to classify a sum as bad. The court applied this test to facts showing ongoing transactions after the loss, crediting hundies maturing post-year, initiation of recovery suit after the year, partial realisations and sale of security producing surplus; these facts establish continued expectation of recovery and therefore the Rs. 2,23,162 did not qualify as a bad debt in S.Y.2004 and the deduction was disallowed. Case-Laws Income Tax Thu, 26 Oct 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=282925