Section 36(1)(vii) in case money was unrecoverable due to inability or insolvency of debtors

Altus Group (India) Pvt. Ltd. Vs DCIT (ITAT Delhi) Conclusion: Deduction under section 36(1)(vii) was allowable in case money was unable to be recovered due to inability or insolvency of the debtor to pay. In all other cases, the claim for allowance should have to be sustained under Section 37(1) which required that the expenditure (not being of a capital nature) should have been wholly and exclusively incurred for the purpose of the business. Advances for salary and deposits for lease premises had been written off and the same were laid out or expended wholly and exclusively for the purposes ...