Deduction with respect to provisions made against trade debtors

Vidras India Ceramics Pvt. Ltd. Vs D.C.I.T. (ITAT Ahmedabad) The controversy that needs to be addressed so as to whether the assessee is eligible for deduction with respect to the provisions made against the trade debtors in pursuance to the explanation 1 to clause (vii) of section 36(1) of the Act. As per the explanation 1 to clause (vii) of section 36(1) of the Act there remains no ambiguity to the fact that the provisions made by the assessee with respect to the bad and doubtful debts will not be eligible for deduction. However, we find that the Hon’ble Supreme Court in the case of Vijaya...