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2004 (11) TMI 85 - MADHYA PRADESH HIGH COURTBad debt - 'Whether the amount of Rs. 3,51,178 which was written off in the previous year of the assessee should not be treated as a debt for the purpose of section 36(2)(i) of the Income-tax Act?' - Revenue contended that the debt in question is not a debt but it is a bogus transaction between the assessee and the company. It was his submission that the transaction in question was at best in the nature of advance and hence, the same does not fall in section 36 ibid – Held that we do not agree to this submission - Held that the amount in question is in the nature of debt and the same having been written off in the earlier previous years by the assessee in her accounts, a case for deduction under section 36(2)(i) ibid, is made out.
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