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2009 (9) TMI 23 - PUNJAB AND HARYANA HIGH COURTBad Debts written off – Business Loss – no efforts for recovery – held that - it is not the case of the revenue that the debt was ever recovered or had ever become recoverable. Before the Tribunal, the contention on behalf of the revenue was that the amount may be treated as bad debt in subsequent year. While the debt has to be allowed as bad debt in the year in which the same became bad debt, it will depend on facts of each case as to the year in which the same became bad debt, depending upon judgment of the assessee unless such a judgment was not genuine - . In the present case, the judgment of the assessee that the amount became bad debt in the year relevant for assessment i.e. 1984-85 itself, could not be rejected. Mere fact that assessee continued efforts by obtaining decree which could not be executed in subsequent year is not enough to reject the opinion of the assessee that the amount had already become bad debt
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