https://www.taxtmi.com/caselaws?id=461957 The Bombay HC upheld ITAT's deletion of addition regarding disallowance of bad debts under Section 36(1)(vii). The assessee wrote off debt from a land sale transaction with a company, establishing debtor-creditor relationship through business dealings. The court found the write-off genuine as no recovery was made and the amount was properly treated as business income in earlier years. The assessee complied with Section 36(2) requirements by accounting for the debt in computing income for the relevant previous year. The court noted legislative amendments removed the burden of proving debt as bad, aiming to reduce litigation and disputes over bad debt deductions. en-us Thu, 14 Mar 2024 00:00:00 +0530 Sat, 10 May 2025 23:25:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=461957 The Bombay HC upheld ITAT's deletion of addition regarding disallowance of bad debts under Section 36(1)(vii). The assessee wrote off debt from a land sale transaction with a company, establishing debtor-creditor relationship through business dealings. The court found the write-off genuine as no recovery was made and the amount was properly treated as business income in earlier years. The assessee complied with Section 36(2) requirements by accounting for the debt in computing income for the relevant previous year. The court noted legislative amendments removed the burden of proving debt as bad, aiming to reduce litigation and disputes over bad debt deductions. Case-Laws Income Tax Thu, 14 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=461957