ITAT Delhi Backs Assessee on NSEL Bad Debt Claim

ACIT Vs Syed Habibur Rehman (ITAT Delhi) Income Tax Appellate Tribunal (ITAT) Delhi has dismissed an appeal by the Income Tax Department, affirming the deletion of a ₹1.50 crore disallowance claimed by Syed Habibur Rehman as bad debts for Assessment Year 2014-15. The Tribunal reiterated that after the 1989 amendment to the Income Tax Act, it is sufficient for an assessee to merely write off a debt as irrecoverable in their books of account; proving the debt has actually become irrecoverable is no longer a prerequisite. The ruling addresses a dispute arising from commodity trading activities ...