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Bad Debt (Deduction u/s 36)

This query is : Resolved 

27 July 2010 Bill raised to a party on account of Commission in the F.Y. 2004-05 and that had been credited to the P & L A/C. Since then no transaction is being made with the party but the assessee is carrying on business in the same name & style. Please suggest whether Bad Debt can be allowed in the F.Y. 2009-10 ?

27 July 2010 This judgement might help

DCIT vs. Shreyas S. Morakhia (ITAT Mumbai Special Bench)


If brokerage offered to tax, the principal debt qualifies as a “bad debt” u/s 36(1)(vii) r.w.s. 36(2)





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