Mere provision for bad debt not entitled to deduction U/s. 36(1)(vii)

Hajee A. P. Bava & Company Vs ACIT (Karnataka High Court)

After 01.04.1989 it is not necessary for the assessee to establish the fact that the debt in fact had become irrecoverable and it is sufficient if the bad debt is written off as irrecoverable in the books of accounts of the assessee.

In the facts of the case, twin issues viz., (i) whether debt which was written off during the relevant year was offered to income in Previous year or earlier years, (ii) whether the

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