ITAT Mumbai allows Bad Debt Write-Off Without Irrevocability Proof  

ACIT Vs Goenka Trading (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT) Mumbai, in a consolidated order addressing appeals for Assessment Years 2015-16, 2016-17, and 2017-18, ruled in favor of Goenka Trading, allowing the company to write off bad debts without providing explicit proof of their irrecoverability. The case centered on a significant bad debt claim of Rs. 13 crore, stemming from trading losses incurred due to the National Spot Exchange Limited (NSEL) crisis. The Assessing Officer (AO) had disallowed the claim, citing the lack of evidence of recovery efforts and the nature of ...