ITAT Allows Bad Debts Claimed Based on Write-Off in P&L Account

Navyug Cottn Company Vs ITO (ITAT Pune) In the case of Navyug Cotton Company vs. ITO, ITAT Pune held that the deduction for claimed bad debts can be allowed based on write-off, thereby eliminating the requirement to prove that the debt actually became irrecoverable. In a notable ruling, the Income Tax Appellate Tribunal (ITAT) Pune, examined the issue of bad debts and certain expenses claimed in the Profit & Loss account. The case in point was Navyug Cotton Company Vs ITO, where the tribunal had to make a decision regarding the confirmation of addition of bad debts and certain expenses. Th...