Case Law Details
Deduction under s 36(1)(vii) is allowable if amount was advanced in the ordinary course of business and the debt was written off as irrevocable in the books of accounts
All Grow Finance and Investment Pvt. Ltd. Vs CIT (Delhi High Court) If the debt is not advanced in the ordinary course of business, it would not qualify for deduction as a bad debt. We are of the view that the only condition laid down in second part of sub-section (2) of Section 36 of the Act is that the amount should be advanced in the ordinary course of business which by itself proves its revenue nature and no further conditions are required to be satisfied which are only applicable with regard to debt qualifying as bad debt in the first part of sub-section (2).
All Grow Finance and Investment Pvt. Ltd. Vs CIT
High Court of Delhi
ITA No. 682/2011
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