High Court Overturns Tribunal, Allows Bad Debt Write-Off u/s 36(i)(vii) for Assessment Year 1991-92.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Deduction of bad debt written off u/s. 36(i) (vii) - lease rental - the prospects of recovery of lease rentals were quite bleak and the assessee considering that the same could not be recovered in the foreseeable future decided to write off a debt as bad debt during the previous year relevant to the Assessment Year 1991-92. It is nobody’s case that the assessee had not complied with the provisions of Section 36(2) - The assessee took a business decision to write off the debt as a bad debt. - The Tribunal has erred in rejecting the claim of the assessee - HC....