Bad debts u/s. 36(1)(vii) are to be allowed once offered as income in any year

M. Sons Gems N Jewellery Pvt. Ltd Vs ACIT (ITAT Delhi)

ITAT Delhi held that disallowance of bad debts claimed as deduction under section 36(1)(vii) is not justifiable if offered as income in any year. Accordingly, AO directed to verify that amount for which bad debts have claimed u/s 36(1)(vii) were indeed offered as income for the said years.

Facts- the assessee company has been engaged in the business of trading of gems and jewellery including its exports. During the year under consideration, the assessee had claimed an amount of Rs.5,75,38,704/- as bad d

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