ITAT Chennai Allows ₹16.84 Lakh Bad Debt Claim from Employee Fraud

K. Paramasivan & Sons Vs DCIT (ITAT Chennai) Bad Debt or Business Loss? ITAT Chennai Says Both Apply When Fraud by Staff is Proved The case concerns a partnership firm engaged in dealership of BPCL petroleum products, for AY 2012-13. Assessee had claimed bad debts of ₹23.10 lakh u/s 36(1)(vii), representing amounts relating to HDFC Credit Card transactions & Petro Card Reloads which, according to Assessee, had become irrecoverable due to fraud by certain contract employees. AO, while completing assessment u/s 143(3), rejected the claim in full, observing that the alleged debts were n...