https://www.taxtmi.com/caselaws?id=56751 A debt may be written off as bad debt when the conditions under section 36(2) are satisfied, even if a civil recovery suit remains pending. The mere existence of recovery proceedings does not prevent deduction where the surrounding facts show that recovery is unlikely. On the undisputed facts, the debtor's business had closed due to heavy losses and the debt had effectively become irrecoverable, so the assessee was entitled to the deduction in the relevant year and the allowance was upheld. en-us Tue, 18 Sep 1984 00:00:00 +0530 Mon, 06 Dec 2010 15:54:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56751 A debt may be written off as bad debt when the conditions under section 36(2) are satisfied, even if a civil recovery suit remains pending. The mere existence of recovery proceedings does not prevent deduction where the surrounding facts show that recovery is unlikely. On the undisputed facts, the debtor's business had closed due to heavy losses and the debt had effectively become irrecoverable, so the assessee was entitled to the deduction in the relevant year and the allowance was upheld. Case-Laws Income Tax Tue, 18 Sep 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56751