9911796707
TMI Blog2018 (7) TMI 2316X X X X Extracts X X X X X X X X Extracts X X X X ..... d it is within the limits specified. No doubt assessee had preferred claims in its return which were in excess of what was allowable u/s.36(1) (viia) of the Act, since debits to the profit and loss account whether it was called provision for standard asset, reserve for DCB difference, NPA provision, waiver loans, sundry debtors over three years, bullet jewel loan, overdue interest reserves, sundry debtors over three years, even if they were all aggregated was lower than the amount assessee could have claimed u/s.36(1) (viia) None of the lower authorities had carefully gone through the nature of the each of the debits mentioned above before coming to a conclusion that these were actually not provision for bad and doubtful debts, but some ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax Act, 1961 (in short the Act ). Ld. Counsel for the assessee submitted that it had claimed the following amounts as deduction u/s.36(1)(viia) of the Act, for the impugned assessment years as under:- Assessment years Amount (₹) 2009-10 ₹ 8,20,59,000/- 2010-11 ₹ 9,53,84,153/- 2011-12 ₹ 12,83,31,937/- 2012-13 ₹ 16,74,89,495/- 2014-15 ₹ 21,76,96,162/- As per the ld. Authorised Representative, assessee had created the following provisions in its account for these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 64/- Total ₹ 1,82,20,543/- Assessment year 2014-2015:- (i) Provision for standard asset ₹ 5,49,38,976/- (ii) Reserve for DCB difference ₹ 7,92,125/- (iii) NPA Provision ₹ 1,35,44,676/- (iv) Waiver loans ₹ 1,06,64,481/- (v) Sundry debtors over 3 years ₹ 2,00,736/- (vi) Bullet Jewel loan provision ₹ 21,45,389/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tative strongly supporting the orders of the lower authorities submitted that assessee had not created a provision as required under the Section 36(1) (viia) of the Act and therefore could not make a claim under the said section. 4. We have considered the rival contentions and perused the orders of the authorities below. Section 36 (1) (viia) of the Act is reproduced hereunder:- 36 (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- (i)............. (ii)............ (iii)........... (viia) in respect of any provision for bad and doubtful debts made by- (a) a scheduled bank not being a ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any before the words provision for bad and doubtful debts indicate that nomenclature under which the provision is made may not be a critical factor in determining the allowance. Once a provision under whatever name is debited in the profit and loss account, then it is can be allowed, provided it is within the limits specified. No doubt assessee had preferred claims in its return which were in excess of what was allowable u/s.36(1) (viia) of the Act, since debits to the profit and loss account whether it was called provision for standard asset, reserve for DCB difference, NPA provision, waiver loans, sundry debtors over three years, bullet jewel loan, overdue interest reserves, sundry debtors over three years, even if they were all ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
