Allowance of bad debt depends on how it is reflected in accounts

Advocate Akhilesh Kumar Sah The allowance of the claim of provision for bad debt is dependent upon how it is reflected in the Balance Sheet and its accounts , disallowing deduction by intimation under section 143(1)(a) of claim of bad debts is not proper: Rules Bombay High Court in Bajaj Auto Finance case According to provisions contained in section 36(1)(vii) of the Income Tax Act, 1961 (for short ‘the Act’), subject to the provisions of sub-section (2) of section 36, the amount of any bad debt or part thereof which is written off as irrecoverable in the accounts of the assessee for th...