Bad debts from credit card business is allowable as deduction u/s 36(1)(vii) of the Income Tax Act

Induslnd Bank Ltd. Vs ACIT (ITAT Mumbai) ITAT Mumbai held that bad debts arising from credit card business would be part and parcel of loss arising in the course of banking business and hence liable as deduction u/s.36(1)(vii) of the Income Tax Act. Facts- The assessee had been deriving huge income of Rs.152.32 crores from its total credit card business of Rs.2030 Crores. Out of the said business, Rs.8.34 Crores had turned bad which the assessee had claimed as bad debts u/s.36(1)(vii) of the Income Tax Act. AO disallowed the bad debts of Rs. 8,33,73,611/- alleging that credit card business was...