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TMI Blog2005 (10) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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) - T.C. Nos. 1012 And 1013 of 2005 - - - Dated:- 26-10-2005 - Judge(s) : P. D. DINAKARAN., N. KANNADASAN. JUDGMENT The judgment of the court was delivered by P.D. Dinakaran J.- Against the order of the Appellate Tribunal in I.T.A. Nos. 1864 1865/Mds/2000, dated November 27, 2001 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e rectification petition filed by the assessee, the Commissioner (Appeals) held that the fact that the debts of the assessee doing the business of financial investments in power sector, etc., were revenue in nature had already been considered and accordingly, rejected the plea of the assessee for rectification. The Appellate Tribunal confirmed the order of the Commissioner (Appeals). The said order of the Appellate Tribunal is put in issue in the present appeals. Section 36(1)(vii) of the Income-tax Act reads as follows: 36. Other deductions.-(1) The deductions provided for in the following clauses shall be allowed in respect of the matters dealt with therein, in computing the income referred to in section 28- ... (vii) subject to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... datory 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. In this view of the matter, we are of the view that the Appellate Tribunal was right in upholding the order of the Commissioner of Income-tax (Appeals) in disallowing provision for non-performing assets whic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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