Claim in respect of bad-debts is allowable once the same is written off as irrecoverable in the books of accounts:

Assessee claimed deduction in respect of bad-debts since the said sum was irrecoverable in spite of filing a suit. AO denied the said claim on the count that the debt had not become bad and doubtful. The Hon’ble High Court held after 01/04/89, it is not necessary for an assessee to establish that the debt had become irrecoverable. Since the assessee had written off such amount as irrecoverable in its books of accounts, the said claim is to be allowed.

[HINDUSTAN MI SWACO LTD. - TAX APPEAL NO.98 of 2012 - GHC]