Written off as bad debt

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2012 Amount paid as advance for acquisition of an entity.. but subsequently became irrecoverable nor acquired by the acquirer.. So, Whether the amount paid as advance can be written off as bad debt?

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
Follow

07 February 2012 Dear friend, the amount paid as advance and after not recoverable will be deducted as business expense u/s. 37(1) of the Income tax Act,1961. Thanks