https://www.taxtmi.com/caselaws?id=467118 Bad-debt deduction is available where amounts due from a subsidiary are written off in the assessee's books as irrecoverable and the factual record supports the write-off. Reimbursable costs and expenditure incurred by the subsidiary were treated as receivables, and the audit committee's recommendation and board approval supported their write-off. In the absence of contrary evidence showing that the debts remained recoverable, tax authorities cannot disallow the deduction on surmise or require independent proof that the debt had become bad. Book write-off therefore suffices for the claimed deduction under income-tax law. en-us Mon, 06 Jun 2022 00:00:00 +0530 Fri, 06 Mar 2026 20:54:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=467118 Bad-debt deduction is available where amounts due from a subsidiary are written off in the assessee's books as irrecoverable and the factual record supports the write-off. Reimbursable costs and expenditure incurred by the subsidiary were treated as receivables, and the audit committee's recommendation and board approval supported their write-off. In the absence of contrary evidence showing that the debts remained recoverable, tax authorities cannot disallow the deduction on surmise or require independent proof that the debt had become bad. Book write-off therefore suffices for the claimed deduction under income-tax law. Case-Laws Income Tax Mon, 06 Jun 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=467118