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2012 (11) TMI 542 - AT - Income TaxDisallowance of Bad debts – Whether claim for provision for bad and doubtful debts under section 36(1)(viia)(c) on its activity relating to providing infrastructure facility be allowed. Held that:- deduction under section 36(1)(vii) on the basis of write-off and provision under section.36(1)(viia) can both be claimed as long as there was no duplication. Since assessee here was not allowed its claim under section 36(1)(viia)(c) for the provision for bad and doubtful debts, there was no threat of any double deduction being availed by it. There is no dispute that for the amount claimed under section.36(1)(vii), there was an actual write off effected in its books. Claim of Revenue that there was violation of Rule 46A, is without any basis, since assessee has not been given the benefit of provision under section 36(1)(viia)(c) of the Act. Hence, the question of bifurcation of activities becomes redundant. It is to be noted that the assessee is not in appeal before us against disallowance of its claim for provision for bad and doubtful debts under section 36(1)(viia)(c). We therefore, do not find any reason to interfere with the order of the CIT(A). The appeals of the Revenue for all the three years stand dismissed - In the result, appeals filed by Revenue are dismissed.
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