https://www.taxtmi.com/caselaws?id=428515 The tribunal upheld the disallowance of bad debts written off by the partnership firm engaged in cotton ginning and pressing, emphasizing the debts must be genuinely irrecoverable and not a result of a colorable device to reduce tax liability. The tribunal found discrepancies in the write-offs, noting that some debts were regularly paid by debtors and denied by them. The appeal was dismissed as the firm failed to prove the genuine irrecoverability of the debts, emphasizing compliance with tax laws and prohibiting the use of colorable devices to avoid tax liability. en-us Wed, 24 Aug 2022 00:00:00 +0530 Mon, 03 Oct 2022 08:57:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=428515 The tribunal upheld the disallowance of bad debts written off by the partnership firm engaged in cotton ginning and pressing, emphasizing the debts must be genuinely irrecoverable and not a result of a colorable device to reduce tax liability. The tribunal found discrepancies in the write-offs, noting that some debts were regularly paid by debtors and denied by them. The appeal was dismissed as the firm failed to prove the genuine irrecoverability of the debts, emphasizing compliance with tax laws and prohibiting the use of colorable devices to avoid tax liability. Case-Laws Income Tax Wed, 24 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=428515