Available for Sale bank securities valued at cost or market value, whichever is lower, under applicable RBI guidelines and ICDS VIII B permit recognition of mark-to-market loss. The sector-specific accounting rules for banks prevail over a general clarification on mark-to-market losses, making the claimed loss deductible. Deduction for a provision for bad and doubtful debts is not confined to advances already classified as bad or doubtful; the statutory computation does not distinguish between standard assets and impaired assets. Both disallowances were deleted and the claims were allowed.
Available for Sale bank securities valued at cost or market value, whichever is lower, under applicable RBI guidelines and ICDS VIII B permit recognition of mark-to-market loss. The sector-specific accounting rules for banks prevail over a general clarification on mark-to-market losses, making the claimed loss deductible. Deduction for a provision for bad and doubtful debts is not confined to advances already classified as bad or doubtful; the statutory computation does not distinguish between standard assets and impaired assets. Both disallowances were deleted and the claims were allowed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4939 
