https://www.taxtmi.com/caselaws?id=460571 ITAT Delhi ruled in favor of the assessee in a revision case under Section 263 regarding bad debt allowability. The tribunal held that the AO's order was not erroneous or prejudicial to revenue interests. The PCIT's revision was based solely on CBDT directions not to allow bad debts due to ongoing recovery proceedings, but the tribunal found this insufficient justification. Following SC precedent in TRF Ltd. and Delhi HC in Sunbeam Auto Ltd., the tribunal held that assessees cannot be forced to wait for recoveries before claiming bad debts. Any future recoveries would be taxable when received. The Section 263 order was set aside. en-us Wed, 24 Nov 2021 00:00:00 +0530 Sun, 02 Feb 2025 09:27:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460571 ITAT Delhi ruled in favor of the assessee in a revision case under Section 263 regarding bad debt allowability. The tribunal held that the AO's order was not erroneous or prejudicial to revenue interests. The PCIT's revision was based solely on CBDT directions not to allow bad debts due to ongoing recovery proceedings, but the tribunal found this insufficient justification. Following SC precedent in TRF Ltd. and Delhi HC in Sunbeam Auto Ltd., the tribunal held that assessees cannot be forced to wait for recoveries before claiming bad debts. Any future recoveries would be taxable when received. The Section 263 order was set aside. Case-Laws Income Tax Wed, 24 Nov 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460571