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TMI Blog2019 (7) TMI 1973X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to the quantum of bad debts in the books nor is computed with reference to the quantum of standard assets. The deduction in this clause refers to allowable provisions of anticipated default on the loans and advances made in respect of total assets including standard assets and the claim of the assessee does not fall into the proviso to section 36(1) (viia) as the proviso deals with further deduction for provisions on bad and doubtful debts. The claim of the assessee is covered in the main provisions of section 36(1)(viia) . In Vellore District Central Co-operative Bank Ltd. [ 2016 (2) TMI 158 - ITAT CHENNAI ] held by the Tribunal that doubtful debts may be under different nomenclature and this will not disentitle the assessee for claimi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer (AO) noticed that the provision for doubtful debts created by the assessee is only Rs.60,00,000/- and accordingly, the deduction u/s 36(1)(viia) is required to be restricted to Rs.60,00,000/-. Thus the AO disallowed the excess claim of deduction of Rs.8,86,815/-. In appeal, the Ld. CIT(A) agreed with the reasons given by the AO and confirmed the above disallowance. 4. Before us, the Ld. counsel of the assessee submits that section 36(1)(viia) does not differentiate between provision on bad assets and provision on standard assets and the deduction refers to allowable provisions of anticipated default on the loans and advances made in respect of total assets including standard assets. It is stated that the provision made for stan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed in respect of provisions for bad and doubtful debts. This section does not differentiate between provision on bad assets and provision on standard assets. This deduction exclusively allows deduction in respect of provision for bad and doubtful debts to the extent mentioned in the various clauses of sub-section (1) of section 36 of the Act. The deduction under section 36(1)(viia) of the Act is allowed only in respect of certain specific categories of assessee mentioned in the clause like banks, financial institutions, etc. who are in business of lending money. It is not allowed even to non-banking financial institutions since they are not included in this clause. It is seen that though section 36(1) (vii) states that deduction for p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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