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2016 (11) TMI 1238 - AT - Income TaxDisallowance of provision created towards non-performing asset under section 36(1)(vii) - Held that:- As per the decision of the hon'ble apex court in the case of Vijaya Bank v. CIT reported in [2010 (4) TMI 46 - SUPREME COURT ] it has been held that if an assessee debits an amount of doubtful debt to "profit and loss account" and credits "sundry debtors account" the same should be allowed as a deduction. This decision being the law of land has to be meticulously followed by all the relevant authorities. However, at the same time, an effective control has to be exercised and established before the Revenue so that the same debtors are not claimed as bad debts again and again because the debtors towards which such bad debts are claimed are not written off in the books of account. Since these aspects have not been considered by the learned Assessing Officer, we hereby remit back the matter to the file of the learned Assessing Officer for fresh consideration, accordingly the issue with respect to computation of deduction under section 36(1)(viia) of the Act is also remitted back for fresh consideration. Further, since the assessee has raised an additional issue in regard to the claim of deduction under section 80P of the Act for the first time, the issue is also remitted back to the file of the learned Assessing Officer for de novo consideration.
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