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2007 (8) TMI 414 - MADRAS HIGH COURT“1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the appellant is not entitled to deduction of the ‘provision’ made in respect of non-performing assets which are considered irrecoverable ? - 2. Whether the Appellate Tribunal was justified in not appreciating that the provision made in respect of non-performing assets if not allowable as a bad debt is allowable as a business loss ? - 3. Whether, on the facts and in the circumstances of the case, the Tribunal was right in treating the amount of Rs. 36,47,585 collected as contingent deposit as income of the appellant ?” – The first and second questions of law are inter-related to each other. Learned counsel appearing for the assessee submits that the issue involved in these questions of law is squarely covered by the decision of this court in the case of T. N. Power Finance and Infrastructure Development Corporation Ltd. v. Joint CIT [2008 - TMI - 9396 - MADRAS High Court] against the assessee. - In the said judgment, the Division Bench of this court has held that the assessee was not entitled to deduction in view of the Explanation to section 36(1)(viia) of the Income-tax Act which says that the provision for bad and doubtful debt made in the accounts of the assessee is not an allowable deduction. Likewise, the third question of law is also covered by the decision of this court in the case of CIT v. Sakthi Finance Ltd. [2008 - TMI - 13357 - MADRAS High Court], wherein it was held that as long as the receipt of the amount by the assessee was clearly associated with liability to refund the amount, such receipt of the amount would not be characterised as an income and, therefore; the same cannot be taxed vide K. C. P. Limited v. CIT [2008 - TMI - 5815 - SUPREME Court] - the tax case appeal is dismissed
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