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TMI Blog2010 (11) TMI 1146X X X X Extracts X X X X X X X X Extracts X X X X ..... aghavan. ORDER PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER In this appeal Revenue is aggrieved that the CIT (A) deleted disallowance of provision for non-performing assets amounting to Rs.10,86,54,377/- made by the AO. 2. Assessee, a company engaged in merchant banking and related activities, had claimed a provision of Rs.10,86,54,377/- against nonperforming assets for the relevant previous year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions for claiming the amount as bad debt". Since the facts in the present case are also analogical, we find that it would be, in the interest of justice, appropriate to restore the matter to the files of the CIT (A) to verify that the amount involved in this case was written off and whether the assessee complied with the requisite conditions for claiming the amount as bad debt. The assessee sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y a provision and hence ought not have been allowed as deduction u/s 36(1)(vii) of the Act. Per contra, ld. AR strongly placed reliance on the decision of the Hon'ble Apex Court in the case of Vijaya Bank Ltd. (supra). He also filed a copy of the annual report of the assessee for the relevant previous year. 5. We have heard the rival submissions and perused the orders. Schedule-M which forms a pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us year. Read alongwith the note mentioned supra, it is clear that the assessee had reduced the provision from its current assets. Hon'ble Apex Court in the case of Vijaya Bank (supra), has held that once an assessee debits provision for debts to the profit and loss account and credit an account like sundry debtors account, it would constitute a write off of actual debt. These conditions having be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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