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2021 (4) TMI 1374 - AT - Income TaxDeduction u/s. 36(1)(viia) - assessee has made a provision for NPA of an amount but actually claimed in the return of income more - case of the AO is that the assessee is only eligible to the extent of provision made for NPA not for entire claim claimed by the assessee - CIT(A) allowed the entire amount claimed by the assessee - HELD THAT:- The similar issue has been considered in the case of State Bank of Patiala[2004 (5) TMI 12 - PUNJAB AND HARYANA HIGH COURT] and has held that making of provision for bad and doubtful debt equivalent to an amount claimed as a deduction in account books is necessary for claiming deduction u/s. 36(1)(viia) of the Act. We find that the Hon'ble Punjab & Haryana High Court (supra) has laid down a clear ratio that to claim deduction making of provision for bad and doubtful debt equivalent to an amount claimed as a deduction in account books is necessary for claiming deduction u/s. 36(1)(viia) of the Act. Respectfully following the principles of precedent, we reverse the order passed by the Ld. CIT(A) - Appeal of the Revenue is allowed.
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