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2005 (10) TMI 38 - HC - Income Tax"Whether the Tribunal is correct in upholding the order of the Commissioner of Income-tax (Appeals) in disallowing provisions for non-performing assets which was debited to the profit and loss account?" - Commissioner (Appeals), on the facts of the case, found that merely because the Reserve Bank of India has directed the assessee to provide for non-performing assets, that direction cannot override the mandatory provisions of the Income-tax Act contained in section 36(1)(viia) which stipulate for deduction not exceeding 5 per cent, of the total income only in respect of the provision for bad and doubtful debts which are predominately revenue in nature or trade related and not for provision for non-performing assets which are of predominately capital nature, and held that the Assessing Officer was right in disallowing the provision of ₹ 30 lakhs debited in the profit and loss account of the assessee towards non-performing assets - Tribunal was right in upholding the order of the Commissioner of Income-tax (Appeals)
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