S.36 Income Tax Act | Deduction For Bad Debt Allowed Only If Assessee Lends In Ordinary Course Of Banking/Money Lending Business: Delhi HC

The Delhi High Court ruled that a deduction for bad debt under Section 36 of 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. The ruling reinforces the importance of proving a genuine lending business.