India - Income Tax Act 2010 - Saarc

1.247 CH. IV - COMPUTATION OF BUSINESS INCOME S. 36the meanings respectively assigned to them under Chapter VII of theFinance (No. 2) Act, 2004 (23 of 2004).(xvi) 61 [***]]62(2) In making any deduction for a bad debt or part thereof, the followingprovisions shall apply—63[(i) no such deduction shall be allowed unless such debt or part thereofhas been taken into account in computing the income of the assesseeof the previous year in which the amount of such debt or part thereofis written off or of an earlier previous year, or represents money lentin the ordinary course of the business of banking or money-lendingwhich is carried on by the assessee;](ii) if the amount ultimately recovered on any such debt or part of debtis less than the difference between the debt or part and the amountso deducted, the deficiency shall be deductible in the previous year inwhich the ultimate recovery is made;(iii) any such debt or part of debt may be deducted if it has alreadybeen written off as irrecoverable in the accounts of an earlierprevious year 64 [(being a previous year relevant to the assessmentyear commencing on the 1st day of April, 1988, or any earlierassessment year)], but the 65 [Assessing] Officer had not allowed it tobe deducted on the ground that it had not been established to havebecome a bad debt in that year;(iv) where any such debt or part of debt is written off as irrecoverable inthe accounts of the previous year 65a [(being a previous year relevantto the assessment year commencing on the 1st day of April, 1988, orany earlier assessment year)] and the 65 [Assessing] Officer is satisfiedthat such debt or part became a bad debt in any earlier previous yearnot falling beyond a period of four previous years immediatelypreceding the previous year in which such debt or part is written off,the provisions of sub-section (6) of section 155 shall apply;61. Clause (xvi) omitted by the Finance (No. 2) Act, 2009, w.r.e.f. 1-4-2009. Prior to its omission,clause (xvi) read as under :‘(xvi) an amount equal to the commodities transaction tax paid by the assessee in respectof the taxable commodities transactions entered into in the course of his businessduring the previous year, if the income arising from such taxable commoditiestransactions is included in the income computed under the head “Profits and gainsof business or profession”.Explanation.—For the purposes of this clause, the expressions “commoditiestransaction tax” and “taxable commodities transaction” shall have the meaningsrespectively assigned to them under Chapter VII of the Finance Act, 2008.’62. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.63. Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.64. Inserted, ibid.65. Substituted for “Income-tax”, ibid., w.e.f. 1-4-1988.65a. Inserted, ibid., w.e.f. 1-4-1989.