https://www.taxtmi.com/caselaws?id=460996 Section 36(1)(vii) permits a bad-debt deduction only to the extent the write-off exceeds the credit balance in the provision for bad and doubtful debts account under Section 36(1)(viia). The relevant credit balance is the opening balance brought forward on 1 April of the accounting year. If the deduction under Section 36(1)(viia) is recomputed at a lower figure because total income is reduced, the corresponding availability under Section 36(1)(vii) must be adjusted accordingly, subject to the statutory ceiling of 5% of total income. On that basis, the assessee could claim the balance of the bad debts written off after allowing the amount admissible under Section 36(1)(viia). en-us Thu, 22 Dec 2011 00:00:00 +0530 Thu, 06 Mar 2025 16:39:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460996 Section 36(1)(vii) permits a bad-debt deduction only to the extent the write-off exceeds the credit balance in the provision for bad and doubtful debts account under Section 36(1)(viia). The relevant credit balance is the opening balance brought forward on 1 April of the accounting year. If the deduction under Section 36(1)(viia) is recomputed at a lower figure because total income is reduced, the corresponding availability under Section 36(1)(vii) must be adjusted accordingly, subject to the statutory ceiling of 5% of total income. On that basis, the assessee could claim the balance of the bad debts written off after allowing the amount admissible under Section 36(1)(viia). Case-Laws Income Tax Thu, 22 Dec 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460996