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Bank’s Claim for non- rural bad debt write off u/s 36(1)(vii) was allowable without adjusted against provisions for bad and doubtful debts.
Case Law Details
- Case Name
- Karnataka Bank Ltd Vs DCIT (ITAT Bangalore)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2015-16
- Courts
- All ITAT, ITAT Bangalore
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Karnataka Bank Ltd Vs DCIT (ITAT Bangalore)
Conclusion: Section 36(1)(vii) of ITA applied separately to non-rural debts, while Section 36(1)(viia) of the tax statute only applied to rural debts, making it clear that banks were entitled to claim both deductions, provided they pertained to different types of advances. Only rural advances were subject to the proviso under Section 36(1)(viia) of tax statute, and non-rural bad debts could be claimed as a deduction without being adjusted against provisions for bad and doubtful debts.
Held: Assessee-bank maintained that Section 36(1)...
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