https://www.taxtmi.com/caselaws?id=775706 The ITAT Mumbai allowed the assessee's claim for bad debt deduction under section 36(1)(vii), holding that the debt was effectively written off in the books despite being labeled as a provision for doubtful debts. The tribunal found that the write-off was real and identifiable, consistent with CBDT Circular No. 12/2016, which permits claims even if recovery efforts continue. The AO's objections regarding lack of a formal court order and suspicion of fabrication were dismissed due to evidence of partial payments and absence of contrary material from the revenue. The claim met statutory requirements, and the addition was deleted. en-us Wed, 16 Jul 2025 00:00:00 +0530 Tue, 29 Jul 2025 08:31:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775706 The ITAT Mumbai allowed the assessee's claim for bad debt deduction under section 36(1)(vii), holding that the debt was effectively written off in the books despite being labeled as a provision for doubtful debts. The tribunal found that the write-off was real and identifiable, consistent with CBDT Circular No. 12/2016, which permits claims even if recovery efforts continue. The AO's objections regarding lack of a formal court order and suspicion of fabrication were dismissed due to evidence of partial payments and absence of contrary material from the revenue. The claim met statutory requirements, and the addition was deleted. Case-Laws Income Tax Wed, 16 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775706