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2018 (9) TMI 1961 - ITAT CHENNAIDisallowance of bad debts written off - AO had accepted the debt to be bad, but had disallowed the claim deeming it to be premature - HELD THAT:- It is clear that debt arose on account of trading in commodities in the exchange and not due to sale of any capital assets. It is clear that once a debt is written off as irrecoverable in the accounts of the assessee, it has to be allowed. It is not required that debt should have arose on account of transactions in any preceding years. Once a debt is claimed as bad and written off in the accounts it has to be allowed. No doubt, if the assessee at a later point of time recovers any money against any sum, it is bound to show it as income. Considering the judgment in the case of T.R.F. Ltd [2010 (2) TMI 211 - SUPREME COURT] we are of the opinion that the claim of the assessee had to be allowed. Orders of the lower authorities on this issue are set aside. - Decided in favour of assessee.
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