Bad debts can be claimed in subsequent assessment years even if bad debts w/off in earlier years – HC

Brief of the Case Calcutta High Court held In the case of Duncan International Ltd. vs. CIT that Section 36 (2) (iii) allowed the assessee to claim the deduction on account of bad debts in subsequent years even if bad debts have written off in earlier years and which were not allowed. The deduction being allowed on account of bad debt either in the assessment year 1980-81 or in the assessment year 1984-85, though strictly speaking law permits deduction in a subsequent period. But considering that the assessment in the year 1980-81 is also open as the reference is pending before us, we permit t...