M/S HASIMARA INDUSTRIES LTD. vs COMMISSIONER OF INCOME TAX WEST BENGAL-IX AND ANOTHER

The Supreme Court addressed the deductibility of a sum of Rupees twenty lakhs under the Income Tax Act, specifically considering whether it constituted a bad debt under Section 36(1)(vii). The Court held that the amount could not be deducted as it was not established that the debt had become irrecoverable in the relevant assessment year, nor was there evidence of efforts made to recover the amount. Consequently, the appeal was dismissed, affirming the High Court's ruling.