Deduction of Bad Debts u/s 36 Income Tax Act only if Lends in Ordinary Course of Banking/ Money Lending Business: Delhi HC

The Delhi High Court has ruled that a deduction for bad debts under the Income Tax Act is allowed only if the assessee lends in the ordinary course of banking or money lending business. The court emphasized the need for a direct connection between the lending activity and the business. This decision clarifies the eligibility criteria for bad debt deductions.