2007 (1) TMI 577

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..... Income-tax Appeal No. 4872/Delhi/2002 relevant for the assessment year 1995-96. 2. The only question that has arisen before us is about the writing off of a bad debt by the assessee. Section 36(1)(vii) of the Income-tax Act, 1961 reads as follows : 36. Other deductions.-(1) The deduction provided for in the following clauses shall be allowed in respect of the matters dealt with therein, .....

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..... ase. Insofar as the assessee is concerned, the debt was written off as irrecoverable and must be presumed, unless the contrary is shown, to be a bad debt. 6. We may note that another Division Bench of this Court in CIT v. Morgan Securities Credits (P.) Ltd. [IT Appeal No. 1442/2006, dated 7th December, 2006], concluded, on a reading of Circular No. 551, dated 23rd January, 1990 issued by the .....

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