Madras HC: Police Superintendent not Liable For IO’s Delay In Filing Chargesheet or Closure Report || Supreme Court: Provident Fund Dues Have Priority over a Bank’s Claim under the SARFAESI Act || SC Holds Landowners Who Accept Compensation Settlements Cannot Later Seek Statutory Benefits || Supreme Court: Endless Investigations and Long Delays in Chargesheets Can Justify Quashing || Delhi HC: Arbitrator Controls Evidence and Appellate Courts Cannot Reassess Facts || Delhi HC: ED Can Search Anyone Holding Crime Proceeds, not Just Those Named in Complaint || Delhi HC: ED Can Search Anyone Holding Crime Proceeds, not Just Those Named in Complaint || Delhi HC: Economic Offender Cannot Seek Travel Abroad For Medical Treatment When Available In India || SC: Governors and President Have No Fixed Timeline To Assent To Bills; “Deemed Assent” is Invalid || SC: Assigning a Decree For Specific Performance of a Sale Agreement Does Not Require Registration

CBDT endeavours to reduce litigation over bad debt- (Ministry of Finance ) (30 May 2016)

MANU/DTCR/0023/2016

Direct Taxation

The Central Board of Direct Taxes bolstered Departmental policies to reduce litigation arising from assessees writing off sums as ‘bad debt’.

The Board clarified that claim for debt in the previous year shall be admissible under under Section 36 of the Income Tax 1961, if it is written off or irrecoverable in the books of accounts for that previous and fulfils legislative stipulations.

Debt can be written off as ‘bad’, or irrecoverable’, permitting deduction by the assessee in its return on income. Income tax assessments often get bogged down in litigation over whether bad debt was actually irrecoverable.

Tags : INCOME TAX BAD DEBT IRRECOVERABLE REDUCING LITIGATION

Share :