No Double Deduction: ITAT Allows Separate Claims for Bad Debts – Sections 36(1)(vii) & 36(1)(viia)

DCIT Vs Small Industries Development Bank of India (ITAT Mumbai) ITAT: No duplication or excessive bad debts deduction claim, allows deduction under both Secs. 36(1)(vii) & 36(1)(viia) Summary: ITAT Mumbai upheld relief to the assessee, a statutory financial institution, on multiple issues relating to bad debt and special reserve deductions. It ruled that deductions under Sections 36(1)(vii) and 36(1)(viia)(c) operate independently, relying on the Supreme Court’s decision in Catholic Syrian Bank Ltd. v. CIT, and that the proviso to Section 36(1)(vii) prevents only double deduction, w...