Business loss and bad debt write-off allowed where employee balances were irrecoverable and account write-off was shown.

Business loss and bad debt write-off allowed where employee balances were irrecoverable and account write-off was shown. https://www.taxtmi.com/highlights?id=98523 The ITAT held that irrecoverable driver and employee balances written off were allowable as business loss, as the facts were identical to an earlier year in the assessee's own case and no distinguishing feature was shown by the Revenue; the disallowance was therefore unsustainable on the principle of consistency. It further held that a bad debt claim cannot be denied merely because the assessee did not prove exhaustive recovery efforts, since after the statutory amendment and the Supreme Court's ruling in TRF Ltd., the governing requirement is write-off in the accounts. The additions on account of both items were directed to be deleted. en-us Tue, 07 Apr 2026 07:48:40 +0530 Tue, 07 Apr 2026 07:48:42 +0530 TaxTMI RSS Generator Business loss and bad debt write-off allowed where employee balances were irrecoverable and account write-off was shown. https://www.taxtmi.com/highlights?id=98523 The ITAT held that irrecoverable driver and employee balances written off were allowable as business loss, as the facts were identical to an earlier year in the assessee's own case and no distinguishing feature was shown by the Revenue; the disallowance was therefore unsustainable on the principle of consistency. It further held that a bad debt claim cannot be denied merely because the assessee did not prove exhaustive recovery efforts, since after the statutory amendment and the Supreme Court's ruling in TRF Ltd., the governing requirement is write-off in the accounts. The additions on account of both items were directed to be deleted. Highlights Income Tax Tue, 07 Apr 2026 07:48:40 +0530 https://www.taxtmi.com/highlights?id=98523