Quiz for the week (16 Feb 2026) :
Santhosh a resident individual was engaged in computer hardware manufacturing activity up to 31st March,2015 at Cochin. He closed down the business w.e.f. 1st April, 2015. He had a huge bad debt of Rs.40 lakhs of FY 2014-15 which was written off in AY 2015-16. The ITR was filed for the AY 2015-16 within time with business loss of Rs.38 lakhs (due to claim of the said huge bad debt write off). He went for employment though court proceedings were continued against the defaulting debtor. In August, 2025 he realized Rs.30 lakhs from the debtor as final one time settlement as per court decree. Is the amount realized in August, 2025 be eligible for set off against business loss of assessment year 2015-16?
Share your thoughts on the above on or before 23rd February, 2026.