Southern Technologies Ltd. Vs. JCIT

An interesting question of law which arises for determination in these Civil Appeals filed by Non-banking Financial Companies (NBFCs for short) is:

Whether the Department is entitled to treat the ‘Provision for NPA, which in terms of RBI Directions 1998 is debited to the P&L Account, as income under Section 2(24) of the Income Tax Act, 1961 , while computing the profits and gains of the business under Sections 28 to 43D of the IT Act?

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