TMI Blog2014 (4) TMI 1242X X X X Extracts X X X X X X X X Extracts X X X X ..... and the credit balance in the provision for bad and doubtful debts made under clause (viia). It was held that the scheduled and non scheduled commercial banks are entitled to full benefit of write off or irrecoverable debts u/s 36(1)(vii) in addition to the benefit of deduction of provision for bad and doubtful debts u/s 36(1)(viia) - Appeal of the assessee treated as allowed for statistical purpose. - I.T.A. No.9195/Mum/2010 / Assessment Year : 2003-2004 - - - Dated:- 9-4-2014 - Shri P.M. Jagtap And Shri Vivek Varma, JJ. Appellant by: Shri C. Naresh Respondent by: Shri Preetam Singh ORDER P.M. Jagtap, This appeal filed by the assessee against the order of ld. CIT(A)-4, Mumbai dated 22-10-2010 for A.Y. 2003- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. Vs. CIT 248 CTR 7 (SC). 3. In its return of income, the assessee had claimed deduction on account of bad debts amounting to ₹ 434,17,95,000/- u/s 36(1)(vii) of the Income Tax act, 1961 which was comprising of ₹ 29,08,15,000/- as bad debts and ₹ 405,09,80,000/- as amount written off as bad debts out of G/L provision for bad debts. The A.O. did not allow this claim of the assessee as, according to him, the assessee had not fulfilled the conditions stipulated u/s 36(1)(vii) as well as 36(1)(viia) of the Act. On appeal, the ld. CIT(A) allowed the claim of the assessee for deduction on account of bad debts only to the extent of ₹ 29,08,15,000/- u/s 36(1)(vii) of the Act after recording the following observations i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e issue raised in the additional grounds is squarely covered in principle by the decision of Hon ble Supreme Court in the case of Catholic Syrian Bank vs. CIT (2012) 248 CTR 1 (SC) wherein it was held that provision of ss. 36(1)(vii) and 36(1)(viia) are distinct and independent items of deduction and operate in their respective fields. It was held that proviso to section 36(1)(vii) operates only in cases falling under Cl. (viia) to limit the deduction to the extent of difference between the debt or part thereof writtenoff in the previous year and the credit balance in the provision for bad and doubtful debts made under clause (viia). It was held that the scheduled and non scheduled commercial banks are entitled to full benefit of write off ..... X X X X Extracts X X X X X X X X Extracts X X X X
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