Bad debts allowable once written off in Books; No requirement to show that it become really bad

Vascular Concepts Limited Vs DCIT (ITAT Bangalore)

For these assessment years as well, the Revenue has not established that conditions stipulated u/s 36(2) of the I.T.Act was not fulfilled with respect to any of the debts which were written off by the assessee during the previous years. Under these circumstances, we are of the view that disallowance made by the Revenue authorities is incorrect as the assessee is only required to write off the bad debts and is not required to establish that it has become real

Please become a Premium member. If you are already a Premium member, login here to access the full content.