In respect of Non-rural advances both provision and bad debts actually written off are allowable simultaneously

Brief of the case: The ITAT Hyderabad in the case of State Bank of Hyderabad vs. DCIT held that the proviso to section 36(1)(vii) applies to bad debts written off relating to rural advances, the same cannot be applied for disallowing deduction claimed on account of write off of bad and doubtful debts relating to non-rural/urban advances. It is because deduction in respect of provision for NPAs u/s 36(1)(viia) and deduction in respect of bad u/s 36(1)(vii) are independent of one another and no restriction has been provided to restrict any one deduction for non-rural advances unlike in case of ...