1979 TAX. L. R. 1067 ::119 ITR 925 ::ILR (1979) 2 Mad 357

Madras High Court

Hon'ble Judge(s): Ramaprasada Rao , C.J. AND Ramanujam , J

Income-tax Act (43 of 1961) , S.36(2)— Deduction of bad debt - Benefit of - Successor assessee can claim deduction of debt written off by his predecessor in business, provided debt is established as bad debt in that year - Assessee, the successor of dissolved firm - Can claim deduction in respect of bad debt written off by firm before its dissolution - Not necessary for him to write off the debt again. (Para 8 10)