2007 (2) TMI 669

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..... /Mds/2002 dated 28.8.2006, raising the following substantial questions of law:- (i) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the appellant is not entitled to deduction of the 'provision' made in respect of Non Performing Assets which are considered irrecoverable (ii) Whether the Appellate Tribunal was justifie .....

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..... efore, to be allowed as a business loss, if it was not allowed as a bad debt. 3. Aggrieved by the order of the Assessing Officer, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals) contending that the provision has been made in accordance with the directions of the Reserve Bank of India on Non Performing Assets and on a case to case basis taking into account the ov .....

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..... ssioner was not justified in deleting the addition, restored the order of the Assessing Officer. Hence, the above appeal. 5. In T.N.Power Finance and Infrastructure Development Corporation Ltd. v. Joint Commissioner of Income Tax (280 ITR 491), this court held that merely because the Reserve Bank of India had given direction to the assessee to provide for non performing assets, the same could n .....

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