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Recognise Your Income First, Then Only Eligible to Claim Bad and Doubtful Debt!

M Company v. Ketua Pengarah Hasil Dalam Negeri

D Company awarded a contract to M Company ("the Appellant") for site-clearing, earth filling and levelling works.

The contract amount was RM3.4 million, payable over 6 months.

M Company subcontracted the work to S company for RM3.2 million with a completion date of 18th January 1998.

S company submitted a claim of RM900,000 to M Company for the first interim payment, and M Company paid RM700,000 to S company.