No Need to Close Individual Debtor Accounts for Bad Debt Deduction: Kerala HC

Geofin Comtrade Limited Vs ACIT (Kerala High Court) The Kerala High Court, in the case of Geofin Comtrade Limited Vs. ACIT, has addressed a dispute concerning the requirements for claiming a deduction for bad debts under Section 36(1)(vii) of the Income Tax Act, 1961. The court held that the mandatory closing of individual debtor accounts is not required for an assessee to claim the deduction, setting aside an Income Tax Appellate Tribunal (ITAT) order that had restored the original disallowances. The case involved the assessment years 2013-2014 and 2014-2015, during which the appellant-assess...