Allowability of bad debts under section 36(1)(vii)

ACIT Vs Ashima Dye cot Pvt. Ltd. (ITAT Ahmedabad)– After the amendment of section 36(1)(vii) of the Income-tax Act, 1961, with effect from April 1, 1989, in order to obtain a deduction in relation to bad debts, it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable: it is enough if the bad debt is written off as irrecoverable in the accounts of the assessee. INCOME TAX APPELLATE TRIBUNAL, AHMEDABAD ITA No. 538/Ahd./2006: 2002- 2003 ACIT, Circle-1, Ahmedabad –Vs- Ashima Dye cot Pvt. Ltd., A’bad Date of Pronouncement: 18/01/2...