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2020 (10) TMI 514 - ITAT BANGLAOREDeduction on account of bad debts written off - assessee is an individual carrying on business of project management and consultancy services earning income from profession - AO did not allow claim of assessee for deduction on the ground that the Assessee was not able to show as to how the debts that were written off as bad debts had in fact become bad and irrecoverable - HELD THAT:- Deduction on account of bad debt as allowed u/s 36(l)(vii) read with section 36(2), after amendment by the Direct Tax Laws (Amendment) Act 1987, envisage merely wiring off the debt as irrecoverable in the accounts of the assessee as a condition for such an allowance. Before the amendment by the DTL (Amendment) Act 1987, of course, there was a condition to establish that the debt has become bad. As in the case of T.R.F. Limited vs C.I.T [2010 (2) TMI 211 - SUPREME COURT] has clearly observed that after 01.04.1989, it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable. It is enough if the bad debt is written off as irrecoverable in the accounts of the assessee. - Decided in favour of assessee.
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