When Banks claim deduction of bad debt written off in previous year by virtue of proviso to section 36(1)(vii), they are entitled to claim deduction of such bad debt only to extent it exceeds provision created and allowed as deduction under clause (viia)

DECIDED BY: HIGH COURT OF KERALA (FB), IN THE CASE OF: CIT Vs. South Indian Bank Ltd., APPEAL NO: ITA No. 299 of 2009, DECIDED ON December 16, 2009 JUDGMENT Ramachandran Nair, J. Though the issue raised in these connected appeals filed by the Revenue stands decided in favour of the assessees by Division Bench judgment of this court in SOUTH INDIAN BANK LTD. V. COMMISSIONER OF INCOME-TAX reported in 262 ITR 579, the department while arguing these appeals before a Division Bench of this court canvassed against the correctness of the said judgment and the Division Bench on being prima facie satis...