The assessee claimed excess deduction u/s 36(1)(viia) for ...

Excess deduction claimed u/s 36(1)(viia) led to income escapement. AO rightly reopened assessment based on records. Not opinion change.

Case Laws Income Tax

July 15, 2024

The assessee claimed excess deduction u/s 36(1)(viia) for provision for bad and doubtful debts, leading to escapement of income. The Assessing Officer rightly formed the belief of income escapement based on assessment records obtained from the Income Tax Officer, revealing the excess deduction claim. It was not a case of change of opinion, as the statutory provisions u/s 36(1)(viia) limit the deduction to 7.5% of total income, leaving no room for differing opinions. The tangible material justified reopening the assessment, and the assessee's reliance on the Delta Airlines case was misplaced. The appeal was dismissed, as it was a clear case of income escapement due to excess deduction claimed, contrary to statutory provisions.

View Source

← Previous Next →

The assessee claimed excess deduction u/s 36(1)(viia) for ...

Excess deduction claimed u/s 36(1)(viia) led to income escapement. AO rightly reopened assessment based on records. Not opinion change.

Case Laws Income Tax

July 15, 2024

You may also like:

Reopening of assessment u/s 147 - claim of deduction u/s 36(1)(viia) - provision for Non-Performing Advances as per the RBI Regulations - The court observed that the...

Disallowance of bad debts as claimed u/s 36(1)(viia) - deduction claimed @10% of aggregate average advances - AO is directed to make relevant enquires and verifications...

Deduction u/s 36(1) (viia) - section 36(1) (viia) clearly provides for deduction of 7.5 % of the total income and a further deduction of 10 % of the aggregate of...

The case pertains to deductions claimed by the assessee u/ss 36(1)(vii) and 36(1)(viia) of the Income Tax Act for amounts written off by rural branches and the...

A bank is eligible to claim deduction towards provision for bad and doubtful debts u/s 36(1)(viia), irrespective of whether it has rural or non-rural advances. The...

Revision u/s 263 - Deduction u/s 36(1)(viii) - Insofar as, the second issue of excess allowances of deduction u/s.36 (1)(vii), the assessment order passed by the AO is...

Expenses incurred by overseas branch – Deduction u/s. 44C has to be given after taking into account deduction u/s. 36(1)(viia) and deduction u/s.36(1)(viia) has to be...

Claim u/s 36(1)(viia) restricted only for provision for rural debts - AT

Decline of claim of deduction u/s 36(1)(viia) of the Act with reference to the advance made by rural branches - Assessing Officer to recompute the amount of deduction...

Deduction u/s 36(1)(viia) - revenue had not taken any action against the directions of the Tribunal as per the original order, and therefore the directions have...

Disallowance u/s. 36(1)(viia) - advances from their Rural Branches - deduction u/s 36(1)(viia) is to be allowed only on the amount of provision made for bad and doubtful...

PCIT's view that section 36 allows deduction only for bad and doubtful debts, not for provision on standard assets, was challenged. AR presented case laws allowing...

Allowability of deduction for payment EPF, LWF and ESI after due date - to claim the benefit of deduction u/s 36(1)(va) payment has to be made before the due date...

Disallowance u/s 36(1)(vii) - bad debt claim in respect of identified debts - The Tribunal found no flaw in the information provided by the assessee regarding the bad...

Deduction u/s 36(1)(viia) of the Act - Provision for bad and doubtful debts - provision for bad and doubtful debts newly created during the year under consideration...

Quick Updates: