Deductibility of Bad Debts: The U-Turn Conundrum
tax mh_cet_law intermediate late_night_postKyaa karta hai? Maine socha tha ki bad debts deduction se exempt hain, lekin kuch cases mein wahi ho raha hai. Take, Ratanlal v. CIT (1975) 100 ITR 306. Court ne bola ki bad debts ki deduction ke liye, business ka continuity zaroori nahin hai, par hamesha bad debts ke saath associated assets ko recover karne ke liye yojana zaroori hai. Lekin phir case of Sree Meenakshi Mills Ltd., In re (2003) 259 ITR 268 aaya, jismein Court ne bola ki bad debts ki deduction ke liye, business ka continuity zaroori hai. Ab kya maine socha tha galat tha ya kya yeh U-Turn hai?
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Bad Debt ki deductibility ke bare mein, Supreme Court ne kai case mein kuch aur kuch faisle karke logon ko confusion mein daal diya hai. Lekin, general rule yeh hai ki bad debt ko taxable income se deduct karna chahiye, lekin uske liye proper accounting records aur proof ki avashyakta hoti hai. Ab yeh u-turn konundrum samajhne ke liye humein court ki previous judgements ka reference lena padega.