The case pertains to deductions claimed by the assessee u/ss...

The case pertains to deductions claimed by the assessee u/ss 36(1)(vii) and 36(1)(viia) of the Income Tax Act for amounts written off by rural branches and the difference between the amount written off and the doubtful debt account. The High Court held that there was no infirmity in the assessee claiming deductions under both provisions, as the provision made under clause (viia) in the previous assessment year was not being reduced from the bad debts written off in the next assessment year. The assessee's case fell within the parameters of deductions under clauses (vii) and (viia), and it was not erroneous or illegal for the assessee to make an independent provision for bad and doubtful debts under clause (viia) to be adjusted in the subsequent assessment year to claim the benefit under clause (vii). The High Court allowed the appeals, ruling that the assessee was entitled to deductions under clauses (vii) and (viia) for the assessment years in question.