alleryStart learning →A bad debt is deductible only when it is treated how in the accounts?
AWritten off as irrecoverable
BShown as a contingent item
CProvided for as a reserve
DDisclosed in audit report
Answer & Solution
Correct answer: A. Written off as irrecoverable
Section 36(1)(vii) allows a bad debt only if it is written off as irrecoverable in the assessee's accounts for the previous year.
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