Bad debt not allowable if not satisfies ingredients of Section 36(1)(vii) & Section 36(2)

PCIT Vs Khyati Realtors Pvt. Ltd. (Supreme Court) Conclusion: Assessee was not entitled to claim deduction of bad debt as the case did not satisfy the ingredients of both Section 36(1)(vii) and Section 36(2) and also advance written off was not allowable as business expenditure u/s 37(1). Held: Assessee carried on real estate development business, trading in transferable development rights (TDR) and finance.  Assessee contended that an amount of ₹ 10 crores was deposited with one M/s C. Developers Pvt. Ltd. towards acquisition of commercial premises two years prior to the assessment year in...