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2014 (10) TMI 1015 - HC - Income TaxStatutory deduction u/s 36(1)(viia) - provision for bad and doubtful debts in excess of provision made in the account - HELD THAT:- If a provision is made in excess of the limits prescribed under the section, the assessee would not be entitled to deduction of the excess amount. At the same time, when the section speaks about the deductions in respect of any provision for bad and doubtful debts made unless such a provision is made, the assessee would not be entitled to the deduction. Once such a provision is made and the said amount is within the limit prescribed under statute, the assessee would be entitled to the amount that is provided for in the accounts. The argument is that when the provision made is less than the amount prescribed under the law, the assessee is entitled to the maximum as prescribed cannot be accepted. The language employed is clear and unambiguous. This is a provision in any fiscal legislation. Therefore, the question of going into the intention or object behind the provision in the light of those clear words would not arise. Therefore, when once a provision is made for bad and doubtful debts and such a provision is less than the limit prescribed under the section what the assessee would be entitled to deduct would be the amount mentioned in the said provision and not the amount prescribed in the section. In that view of the matter, the orders passed by the authorities are not in accordance with law and the judgment of the Tribunal rendered in Syndicate Bank’s case on which reliance is placed runs counter to the statutory provision and therefore, the said order passed by the Tribunal does not lay down the correct law. Decided against the assessee. Deduction u/s 36(1)(vii) without adjusting the said amount of bad debts against the provision available under Section 36(1)(viia) of the Act brought forwarded and created during the year - HELD THAT:- In view of the judgment of the Apex Court in the case of CATHOLIC SYRIAN BANK LTD., Vs. COMMISSIONER OF INCOME TAX, THRISSUR in [2012 (2) TMI 262 - SUPREME COURT] the issue has been correctly answered by the Tribunal in favour of the assessee and against the revenue.
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