https://www.taxtmi.com/caselaws?id=28808 A debt is deductible as a bad debt only if, on the objective facts of the relevant previous year, the assessee can show that recovery had become commercially hopeless. The write-off itself is relevant but not conclusive, and the assessee bears the burden of proving irrecoverability on a practical business assessment. Subsequent recovery steps and pursuit of decrees may test the genuineness of the claim. On the facts, the assessee continued recovery efforts and failed to show that the debts had lost every real chance of recovery in the assessment year, so deduction was rightly denied. en-us Tue, 09 Feb 1982 00:00:00 +0530 Thu, 25 Feb 2010 18:24:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28808 A debt is deductible as a bad debt only if, on the objective facts of the relevant previous year, the assessee can show that recovery had become commercially hopeless. The write-off itself is relevant but not conclusive, and the assessee bears the burden of proving irrecoverability on a practical business assessment. Subsequent recovery steps and pursuit of decrees may test the genuineness of the claim. On the facts, the assessee continued recovery efforts and failed to show that the debts had lost every real chance of recovery in the assessment year, so deduction was rightly denied. Case-Laws Income Tax Tue, 09 Feb 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28808