Meaning of “Irrecoverable”

Case Name : Kerala State Industrial Development Corpn. Ltd. Vs. CIT

Citation :[2006] 151 TAXMAN 127/281 ITR 413/201 CTR 144 (KER.)

Court : Kerala High Court

Section : 36

Meaning : Whatever be the attendant circumstances, unless and until a debt has been written off as ‘irrecoverable’ as provided under section 36(2)(i)(b), the assessee cannot claim any deduction for bad debts. The word ‘irrecoverable’ in section 36(2)(i)(b) means the amount that is not recoverable.

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