https://www.taxtmi.com/caselaws?id=26489 The court ruled in favor of the assessee, allowing the amount representing receipts from a distributor to be deducted as a bad debt for the year. The Tribunal's decision to delete the amount from the income was upheld, as the debt was deemed bad due to the distributor absconding and the high cost of litigation, meeting the conditions for a bad debt deduction under Section 36(1)(vii) of the Income-tax Act. The court emphasized that the debt was treated as irrecoverable, as evidenced by the reversal of entries related to the bounced cheques, supporting the deduction claim. en-us Tue, 03 Dec 1985 00:00:00 +0530 Fri, 05 Feb 2010 13:27:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26489 The court ruled in favor of the assessee, allowing the amount representing receipts from a distributor to be deducted as a bad debt for the year. The Tribunal's decision to delete the amount from the income was upheld, as the debt was deemed bad due to the distributor absconding and the high cost of litigation, meeting the conditions for a bad debt deduction under Section 36(1)(vii) of the Income-tax Act. The court emphasized that the debt was treated as irrecoverable, as evidenced by the reversal of entries related to the bounced cheques, supporting the deduction claim. Case-Laws Income Tax Tue, 03 Dec 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26489