Raju succeeded to the business of his father Ramu consequent to demise of Ramu on 1.2.2019. Raju recovered ₹ 30,000 due from a Customer which was written off by late Ramu as bad debt and allowed in the assessment year 2015-16. The amount recovered is:
A. Exempt from tax
B. Fully taxable as business income
C. ₹ 15,000 being 50% taxable as business income
D. To be set off against current year bad debts
Answer:B
Raju succeeded to the business of his father Ramu consequent to demise of Ramu on 1.2.2019. Raju recovered ₹ 30,000 due from a Customer which was written off by late Ramu as bad debt and allowed in the assessment year 2015-16. The amount recovered is:
A. Exempt from tax B. Fully taxable as business income C. ₹ 15,000 being 50% taxable as business income D. To be set off against current year bad debts