Bad debit allowed

The Ahmedabad Bench of the Income Tax Appellate Tribunal, by its order dated 30 June 2026, allowed a deduction of ₹2.69 crore claimed as bad debt by a commodity trader in relation to the NSEL crisis. 

The Tribunal held that once the debt is written off in the books and the statutory conditions under Section 36(1)(vii) are fulfilled, the deduction cannot be denied merely because recovery proceedings are continuing.