https://www.taxtmi.com/caselaws?id=27623 A bad debt deduction under section 36(1)(vii) depends on whether the debt was taken into account in computing income of the same continuing business, not on a rigid identity of the assessee. Where a successor firm carries on the identical business without break and the debt had already entered the predecessor's business income computation, the successor may claim the deduction. Section 36(2)(i)(a) does not bar the claim in that situation, and the later recovery rule in section 41(4) does not alter this position because it concerns a different charging mechanism for amounts recovered after allowance. en-us Wed, 25 Mar 1981 00:00:00 +0530 Mon, 15 Feb 2010 10:47:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27623 A bad debt deduction under section 36(1)(vii) depends on whether the debt was taken into account in computing income of the same continuing business, not on a rigid identity of the assessee. Where a successor firm carries on the identical business without break and the debt had already entered the predecessor's business income computation, the successor may claim the deduction. Section 36(2)(i)(a) does not bar the claim in that situation, and the later recovery rule in section 41(4) does not alter this position because it concerns a different charging mechanism for amounts recovered after allowance. Case-Laws Income Tax Wed, 25 Mar 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27623