Deduction from the income of banks and institutions.

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..... porations which the sick units are unable to pay due to unsound financial condition will be eligible for deduction from the income of such banks and institutions. 2. In the case which came up for consideration before the Board the borrower was an undertaking set up almost entirely with public fund. The undertaking ran into financial difficulties and was unable to pay interest accrued on the loan .....

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..... ave larger losses to the Banks/Financial institutions. Thus, if on a bonafide consideration of the matter, it is considered commercially expedient to remit accrued interest or part thereof, the loss on account of such remission by the nationalised banks and State/Central financial institutions could be regarded as a trading loss incidental to their business and may be allowed as deduction while co .....

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