https://www.taxtmi.com/caselaws?id=37509 The High Court of Madras allowed the deduction of a bad debt amounting to Rs. 16,363 for the assessment year 1966-67. The court held that the debt due from an insolvent constituent was an asset of the firm, effectively taken over by the assessee upon dissolution. Emphasizing that the final dividend received by the official assignee was included in the assessee's income computation, the court ruled in favor of the assessee's entitlement to the debt amount. Additionally, the court clarified that the assessee could claim the deduction without a fresh write-off of the debt, meeting the conditions specified in the Income-tax Act. en-us Fri, 30 Jun 1978 00:00:00 +0530 Tue, 30 Mar 2010 12:17:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37509 The High Court of Madras allowed the deduction of a bad debt amounting to Rs. 16,363 for the assessment year 1966-67. The court held that the debt due from an insolvent constituent was an asset of the firm, effectively taken over by the assessee upon dissolution. Emphasizing that the final dividend received by the official assignee was included in the assessee's income computation, the court ruled in favor of the assessee's entitlement to the debt amount. Additionally, the court clarified that the assessee could claim the deduction without a fresh write-off of the debt, meeting the conditions specified in the Income-tax Act. Case-Laws Income Tax Fri, 30 Jun 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37509