Trf Ltd vs Commnr. Of Income Tax

The Supreme Court clarified that under Section 36(1)(vii) of the Income Tax Act, 1961, post-1st April 1989, it is sufficient for an assessee to write off a bad debt as irrecoverable in their accounts without needing to establish its irrecoverability. The Court found that the Assessing Officer failed to verify if the debt was indeed written off, necessitating a remand for de novo consideration of this aspect. The appeals were disposed of with no order as to costs.