Bad debt deduction scrutiny: allow bank claims only when statutory provision and accounting conditions are satisfied. Deductions by banks under Profits and Gains must be allowed only after verification. Bad debt claims under Section 36(1)(vii) require writing off and prior debit to the Provision for Bad and Doubtful Debts; only amounts exceeding the opening provision balance are allowable and limits under Section 36(2)(viia) apply. Head office expenses for foreign banks must meet Section 44C, arm's length and DTAA conditions. Interest embedded in capital purchase of securities is not deductible; expenditures related to exempt income are barred by Section 14A, and other statutory timing and payment rules (Sections 43B, 35DDA, 37, 145) govern allowability.
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Provisions expressly mentioned in the judgment/order text.
Bad debt deduction scrutiny: allow bank claims only when statutory provision and accounting conditions are satisfied.
Deductions by banks under Profits and Gains must be allowed only after verification. Bad debt claims under Section 36(1)(vii) require writing off and prior debit to the Provision for Bad and Doubtful Debts; only amounts exceeding the opening provision balance are allowable and limits under Section 36(2)(viia) apply. Head office expenses for foreign banks must meet Section 44C, arm's length and DTAA conditions. Interest embedded in capital purchase of securities is not deductible; expenditures related to exempt income are barred by Section 14A, and other statutory timing and payment rules (Sections 43B, 35DDA, 37, 145) govern allowability.
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