It is enough if bad debt written off as irrecoverable in the accounts of assessee, subject to provisions of S. 36(2)

ACIT Vs. Lex Orbis Conbsulting Pvt. Ltd. (ITAT Delhi) – After 1-4-1989, it is not necessary for the assessee to establish that the debt, in  fact, has become irrecoverable. It is enough if the bad debt is written off as irrecoverable in the accounts of the assessee, subject to the provisions of section 36(2) that such debt or part thereof has been taken into account in computing the income of the assessee of the previous year in which the amount of such debt or part thereof is written off or of an earlier previous year. As the appellant has shown the amount of Rs.23,00,894/- (claimed as...