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2012 (8) TMI 699 - ITAT, KOLKATADisallowance of provision for bad and doubtful debts – Held that:- Deduction for bad debt(s) can be allowed only if the debt is written off in the books as bad debt - But in the case of rural advances, a deduction would be allowed even in respect of a mere provision without insisting on an actual write off - proviso indicates that it is limited in its application to bad debt(s) arising out of rural advances of a bank. It follows that if the amount of bad debt(s) actually written off in the accounts of the bank represents only debt(s) arising out of urban advances, the allowance thereof in the assessment is not affected, controlled or limited in any way by the proviso to clause (vii) - in favour of the assessee Decision in the case of Catholic Syrian Bank Ltd. vs CIT (2012 (2) TMI 262 - SUPREME COURT OF INDIA) followed.
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