Tag Archives: Central Circle

ITAT Remands Defect Liability Expense Issue and Allows Bad Debts and PF/ESI Deductions Issue Whether expenses incurred during a contractual Defect Liability Period (DLP) are allowable under Section 37(1), bad debts written off meet the criteria under Section 36(1)(vii), and employees’ PF/ESI contributions deposited within statutory due dates are allowable under Section 36(1)(va). Facts Defect… Read More »

Write-off of Expired Inventory and Bad Debts Supported by Evidence Is Allowable Issue Whether the write-off of expired finished goods inventory under Section 37(1) is allowable as a business expenditure when supported by physical verification and destruction norms. Whether the write-off of bad debts under Section 36 is allowable when substantiated by debtor details, sale… Read More »