PR. COMMISSIONER OF INCOME TAX 6 vs KHYATI REALTORS PVT. LTD.

The Supreme Court upheld the decision of the Bombay High Court affirming the Income Tax Appellate Tribunal's ruling that allowed Khyati Realtors Pvt. Ltd. to write off ₹ 10 crores as a bad debt. The court reasoned that the amount was deposited for a project that did not progress, and the assessee had made reasonable efforts to recover the amount. The ruling clarifies the conditions under which a debt can be considered bad under the Income Tax Act.