Provision for Standard Assets allowable under Section 36(1)(viia) of Income Tax Act

ACIT Vs Jila Sahakari Kendriya Bank (ITAT Indore) ITAT Indore holds Provision for Standard Assets as Allowable Deduction under Section 36(1)(viia) of Income Tax Act, 1961 Facts: The assessee had claimed a total deduction of Rs. 10,00,00,000/- u/s 36(1)(viia) under two captions, namely : 1. Provision for Non-Performing Assets – Rs. 5 crores; and 2. Provision for standard assets – Rs. 5 crores. The Ld. AO after analysing section 36(1)(viia) of the income tax framed a view that: “Provision for NPA” is a provision for bad-debt and therefore allowable as deduction; but “Provision f...