https://www.taxtmi.com/caselaws?id=425408 The High Court held in favor of the appellant, a Non-Banking Finance Company, in a case concerning the deduction of bad debt written off under Section 36(1)(vii) of the Income Tax Act, 1961. The Court ruled that the appellant's write-off of bad debt was valid under the amended provision, emphasizing that adherence to the mercantile system of accounting was not necessary for claiming such deductions. The decision to write off the debt was deemed bona fide based on commercial assessment. The Tribunal's rejection was overturned, directing the Assessing Officer to allow the claim of bad debt and issue a revised assessment order. en-us Mon, 18 Jul 2022 00:00:00 +0530 Mon, 10 Oct 2022 11:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=425408 The High Court held in favor of the appellant, a Non-Banking Finance Company, in a case concerning the deduction of bad debt written off under Section 36(1)(vii) of the Income Tax Act, 1961. The Court ruled that the appellant's write-off of bad debt was valid under the amended provision, emphasizing that adherence to the mercantile system of accounting was not necessary for claiming such deductions. The decision to write off the debt was deemed bona fide based on commercial assessment. The Tribunal's rejection was overturned, directing the Assessing Officer to allow the claim of bad debt and issue a revised assessment order. Case-Laws Income Tax Mon, 18 Jul 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=425408