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2014 (4) TMI 1242 - AT - Income TaxEligibilty for deduction u/s 36(1)(vii) and 36(1)(viia) - benefit of deduction of provision for bad and doubtful debts u/s 36(1)(viia) - HELD THAT:- Hon’ble Supreme Court in the case of Catholic Syrian Bank vs. CIT [2012 (2) TMI 262 - SUPREME COURT OF INDIA] wherein it was held that provision of ss. 36(1)(vii) and 36(1)(viia) are distinct and independent items of deduction and operate in their respective fields. It was held that proviso to section 36(1)(vii) operates only in cases falling under Cl. (viia) to limit the deduction to the extent of difference between the debt or part thereof writtenoff in the previous year and the credit balance in the provision for bad and doubtful debts made under clause (viia). It was held that the scheduled and non scheduled commercial banks are entitled to full benefit of write off or irrecoverable debts u/s 36(1)(vii) in addition to the benefit of deduction of provision for bad and doubtful debts u/s 36(1)(viia) - Appeal of the assessee treated as allowed for statistical purpose.
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