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2017 (7) TMI 955 - HC - Income TaxDeduction on account of bad debts u/s 36 (1) disallowed - Held that:- The Supreme Court in TRF Limited Vs. Commissioner of Income Tax (2010 (2) TMI 211 - SUPREME COURT) has ruled that for claiming deduction under Section 36 (1) (vii) of the Act the appellant assessee has only to establish that the bad debts were written off and it is not necessary to establish that the debts have become irrecoverable. The appellant assessee for the assessment year 2010-11 pursuant to the resolution of the Board of Directors of the Company taken during the financial year 2009-10 has actually written off the amount of ₹ 4520.19 lacs as bad debts. In other words, when a conscious decision is taken on consideration of the various factors that particular amount has become unrecoverable that is sufficient enough to write off the same as bad debt even though for some reason it may subsequently be recovered. That being the position, we are of the opinion that the tribunal has taken a very casual approach in dismissing the appeal of the assessee appeal on the above score by refusing to allow deduction under Section 36 (1) (vii) of the Act. Accordingly, we answer the above question in favour of the assessee
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