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2011 (3) TMI 454 - HC - Income TaxDeduction u/s 36(1)(vii)- Provision for bad and doubtful debt - Provision for bad and doubtful debt is not to be included in any bad debt or part thereof written off as irrecoverable in the accounts of the assessee - It is only actual debt whose recovery has become bad which is written off is admissible and no provision for bad and doubtful debt is admissible as expenditure under Section 36 (1)(vii) of the Act - The Tribunal had thus erred in reversing the order of CIT(A) and allowing the provision for bad and doubtful debt as expense under Section 36(1)(vii) of the Act - answered in favour of the revenue.
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