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2018 (2) TMI 1468 - KARNATAKA HIGH COURTClaim for written back of excess provision for bad and doubtful debts - Held that:- If an allowance or deduction has been made in the assessment for any year in respect of loss, expenditure or trading liability and the same is written back in the books of accounts, the said written back expenditure, loss or trading liability shall be eligible to levy of tax as income. The burden lies on the Revenue to prove that the provision for bad and doubtful debts written back was allowed as expenditure reducing profit in the profits and loss account for the previous year. It is the case of the assessee that as per RBI guidelines for provisioning of bad and doubtful debts, in terms of Section 36(1)(viia), provision was made. The same being excess, was written back in the books of accounts. Recovery if any from such written of accounts is being offered to tax on yearly basis under the head “Miscellaneous income” by the bank. The appellate authority as well as the Tribunal placing reliance on the decision of the ITAT, Delhi Bench in the case of Bank of Tokyo Vs. JCIT (2009 (7) TMI 178 - ITAT DELHI-B) and considering the fact that the Revenue has not established that the excess provision written back in the profit and loss account was allowed as deduction in the previous years has given a finding against the Revenue. We do not find any infirmity or irregularity in such finding - Decided in favour of assessee.
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