This is premium content. Please become a Premium member. If you are already a member, login here to access the full content.
Taxpayer not required to demonstrate that the debt has become bad debt once it is written off in the books of account: SC
Case Law Details
- Case Name
- TRF Ltd. Vs. CIT (Supreme Court of India)
- Appeal Number
- Only available for paid members
- Courts
- Supreme Court of India
Supreme Court Ruling: After 1 April 1989 the Taxpayer is not required to demonstrate that the debt has become bad debt once it is written off in the books of account
Supreme Court Ruling:
In order to claim a bad debt as a deduction under section 36(1)(vii) of the Income Tax Act (Act) it has been a long drawn controversy between the Taxpayer and the Revenue whether in addition to write-off the debt in the books of account, it is obligatory on the Taxpayer to establish that such debt has become a bad debt, especially after the amendment brought in by the Direct Tax Laws (Amendment) Act, 1987 w.e...
