Mere write-off in books sufficient to claim bad debts u/s 36(1)(vii): Delhi ITAT

Ambey Laboratories Limited Vs ACIT (ITAT Delhi) Assessee wrote off dues from a Thai customer due to quality disputes. AO & CIT(A) disallowed the claim citing lack of evidence of recovery efforts & write-off. Tribunal observed that Sec 36(1 )(vii) provides that any bad debt written off in the books of account as irrecoverable is an allowable deduction. It has been settled by the Apex Court in TRF Ltd. v. CIT [2010] 323 ITR 397 that writing off of debt in the books of account is the only condition for claiming deduction of bad debt under section 36(1 )(vii) & it is not necessary ...