It is a mandatory condition to write off the amount due from debtor in the books of accounts to claim deduction thereof as bad debt.

True: It is mandatory to write off the amount due from debtor as not receivable in the books of account, in order to claim the same as bad debt u/s 36(1)(vii) of the Income Tax Act, 1961. However, where the debt has been taken into account in computing the income of the assessee on the basis of ICDSs notified under section 145(2) of the Income Tax Act, 1961, without recording the same in the accounts, then such debt shall be allowed in the previous year in which such debt becomes irrecoverable and it shall be deemed that such debt or part thereof has been written off as irrecoverable in the accounts for the said purpose.