Not necessary to establish that debt become irrecoverable

Joseph Davaraj Koilpillai Vs ITO (ITAT Bangalore) Deduction on account of bad debt as allowed u/s 36(1)(vii) read with section 36(2), after amendment by the Direct Tax Laws (Amendment) Act 1987, envisage merely wiring off the debt as irrecoverable in the accounts of the assessee as a condition for such an allowance. Before the amendment by the DTL (Amendment) Act 1987, of course, there was a condition to establish that the debt has become bad. The Hon’ble Supreme Court in the case of T.R.F. Limited vs C.I.T reported in 323 ITR 397(SC) has clearly observed that after 01.04.1989, it is not...