Taxpayer’s Claim on Bad Debt Deduction u/s 36 (1) (vii) Allowed: ITAT Condones Delay in Appeal

The ITAT condoned the delay in filing an appeal and allowed the taxpayer’s claim for a bad debt deduction under Section 36(1)(vii) of the Income Tax Act. The taxpayer had written off a bad debt but failed to file the appeal within the prescribed time limit. The Tribunal recognized the genuine difficulty faced by the taxpayer and allowed the appeal. This case underscores the discretion of tax authorities to condone delays in appeals where the taxpayer can show reasonable cause.