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2014 (3) TMI 396 - HC - Income TaxDeletion on account of claim of bad debts u/s 36 (1) (viia) r.w.s. 36 (2) of the Income Tax Act.– Held that:- Provision for doubtful debts written back has to be seen in the context of whether the provision had been allowed as deduction in order to determine the taxability at the later point of time of write back – Relying upon Commissioner Of Income-Tax Versus Lal Textile Finishing Mills Pvt. Limited [1989 (5) TMI 30 - PUNJAB AND HARYANA High Court] – thus, the deduction was not allowed - the condition precedent for application of Section 36 (1) (viia) and 36 (2) on the one hand are applicable and the Section 41 (4) would not apply – Decided against Revenue. Deduction u/s 80P of the Act – Held that:- The circumstance that the provision for bad debts was either added back or not added back would be irrelevant, since the deduction is with reference to the income from the activities listed in Section 80P (2) which is part of the gross total income – the decision in Commissioner of Income Tax vs. Nagpur Zilla Krishi Audyogik Sahakari Sangh Ltd. [1992 (9) TMI 18 - BOMBAY High Court] followed - the words "gross total income" referred to in section 80P(1) must be given the defined meaning which means total income computed in accordance with the provisions of the Act, but before making any deduction under Chapter VI-A or section 280-O - Computation in accordance with the provisions of the Act must mean computation in accordance with section 29 - the expression "the amount of profits and gains" used in sub-section (2) of section 80P cannot be understood in a different sense - The expression must mean income as computed under section 29 – thus, there is no substantial question of law arises – Decided against Revenue.
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