Deduction u/s. 36(1)(viia) is distinct from deduction u/s. 36(1)(viia): Bombay HC

Industrial Development Bank of India Vs DCIT (Bombay High Court) Bombay High Court held that the deduction on account of provision for bad and doubtful debts u/s. 36(1)(viia) of the Income Tax Act is distinct and independent of the provisions of section 36(1)(vii) of the Income Tax Act relating to allowance of the bad debts. Facts- The appellant is a Scheduled Commercial Bank, which has rural branches as defined in clause (ia) of Explanation to Section 36(1) (viia) of the Income-tax Act. The assessee follows the practice of writing off in its books of accounts, bad debts during the course of t...