ITAT Delhi Allows Bad Debt Deduction as Valid Book Write-Off Is Sufficient

Instronics Limited Vs ITO (ITAT Delhi) In this case, the assessee, a registered Non-Banking Financial Company (NBFC), filed its return declaring nil income for Assessment Year 2016-17. During scrutiny assessment, the Assessing Officer (AO) noticed that the assessee had claimed a deduction of ₹53,11,956 as bad debts in its Profit and Loss Account. The claim related to loans advanced to UM Power Ltd. and the interest accrued thereon over several financial years. According to the assessee, ₹46 lakh had been lent in the ordinary course of its money-lending business during FY 2012-13. Interest ...