https://www.taxtmi.com/caselaws?id=49328 Bad debt allowance under section 10(2)(xi) did not require prior write-off in the books of account; the decisive test was whether the debt had in fact become irrecoverable in the relevant year, with any book entry serving only as evidentiary support and as a ceiling where a write-off existed. By contrast, a trading loss caused by embezzlement arose only when the loss became actual and certain, not merely when the misappropriation occurred. Because the embezzlements were undiscovered in the year and recovery still appeared reasonably possible, the loss was not treated as deductible in that year. en-us Thu, 22 Oct 1964 00:00:00 +0530 Thu, 21 Aug 2014 19:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49328 Bad debt allowance under section 10(2)(xi) did not require prior write-off in the books of account; the decisive test was whether the debt had in fact become irrecoverable in the relevant year, with any book entry serving only as evidentiary support and as a ceiling where a write-off existed. By contrast, a trading loss caused by embezzlement arose only when the loss became actual and certain, not merely when the misappropriation occurred. Because the embezzlements were undiscovered in the year and recovery still appeared reasonably possible, the loss was not treated as deductible in that year. Case-Laws Income Tax Thu, 22 Oct 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49328