|Bombay High Court
Section 36(1)(vii) IT Act | Bad Debt Deduction Allowed on Mere Provision Without Write-Off If Litigation Pending : Bombay HC
Bombay High Court clarifies that taxpayers can claim bad debt deduction under Section 36(1)(vii) of the Income Tax Act by merely making a provision in the P&L account if litigation is pending, without requiring an express write-off. This ruling reconciles conflicting precedents and eases compliance for businesses awaiting dispute resolution.