COMMISSIONER OF INCOME TAX Vs. D.C.M. LTD.
LAWS(DLH)-2007-1-217
HIGH COURT OF DELHI
Decided on January 10,2007

COMMISSIONER OF INCOME TAX Appellant
VERSUS
D.C.M. LTD. Respondents

JUDGEMENT

- (1.) 4872/Del/2002, relevant for the asst. yr. 1995 -96.
(2.) The only question that has arisen before us is about the writing off of a bad debt by the assessee. 3. Sec. 36(1)(vii) of the IT Act, 1961 reads as follows : "36 (1) The deduction provided for in the following clauses shall be allowed in respect of the matters dealt with therein, in computing the income referred to in s. 28 (i) to (vi) XXX XXX XXX (vii) subject to the provisions of sub -s. (2), the amount of any bad debt or part thereof which is written off as irrecoverable in the accounts of the assessee for the previous year."
(3.) Admittedly, the assessee had written off the debt as irrecoverable in the relevant previous year. The contention of learned counsel for the Revenue is that there must be some evidence to show that the debt was bad before it could be written off as irrecoverable. ;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.