TMI Blog2015 (4) TMI 1203X X X X Extracts X X X X X X X X Extracts X X X X ..... gies Ltd. Vs. Joint Commissioner of Income-Tax [2010 (1) TMI 5 - SUPREME COURT OF INDIA] Section 36(1) (viia) provides for a deduction not only in respect of "written off" bad debt but in case of banks it extends the allowance also to any Provision for bad and doubtful debts made by banks which incentive is not given to NBFCs - even in the case of banks the Provision for NPA has to be added back ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Such examination and finding thereon will not depend upon presentation of expense/loss in the financial statements of the NBFC in terms of the 1998 Directions. Therefore, in our view, the RBI Directions 1998 and the Income-tax Act operate in different fields. - Decided in favour of the revenue - ITA NO.374 OF 2009 - - - Dated:- 23-4-2015 - THE HON'BLE JUSTICE GIRISH CHANDRA GUPTA AND THE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 36(1)(vii) of the Income-tax Act, 1961, to the effect that a provision will not amount to writing off? Mr. Jhunjhunwala, learned advocate appearing for the assessee/respondent very fairly drew our attention to the judgment in the case of Southern Technologies Ltd. Vs. Joint Commissioner of Income-Tax reported in (2010) 320 ITR 577 (SC) wherein the Apex Court held that; Therefore, in our vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch losses are contingent or actual cannot be decided only on the basis of presentation. Such presentation will not bind the authority under the Income-tax Act. Ultimately, the nature of transaction has to be examined. In each case, the authority has to examine the nature of expense/loss. Such examination and finding thereon will not depend upon presentation of expense/loss in the financial stateme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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