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2021 (5) TMI 594 - HC - Income TaxProvisions for NPA's debited to P & L Account - Deduction for provision for bad and doubtful debt u/s 36(1)(viia) - Tribunal held that though the assessee has used the nomenclature as provision for non performing assets but in pith and substance, the provision has been created for bad and doubtful debts and in doing so the assessee has followed the guidelines framed by Reserve Bank of India as affirmed the finding recorded by the Commissioner of Income Tax (Appeals) - HELD THAT:- This court in Canfin Homes Ltd. [2011 (8) TMI 178 - KARNATAKA HIGH COURT] after taking note of Section 145 of the Act has held that once a particular asset is shown as non performing asset then the assumption that it is not yielding any revenue. When an asset is not yielding any revenue, the question of showing that revenue and paying tax would not arise. The contentions, which are sought to be raised by learned counsel for the revenue do not arise for consideration in the context of substantial question of law, which has been framed by this court. The concurrent findings have been recorded by the Commissioner of Income Tax (Appeals) as well as tribunal in this regard, which cannot be termed as perverse. Decided in favour of the assessee.
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