https://www.taxtmi.com/caselaws?id=62017 Interpretation of deductibility of bad and doubtful debts under section 36(1): the proviso limiting deduction to the excess over the provision created under clause viia is confined to debts arising from rural advances; debts actually written off that do not arise from rural advances are not restricted by that proviso and remain allowable. The provisos language and contemporaneous Board circulars indicate clause viia applies only to rural advances, so limitation applies only to rural bad debts. Factual allocation between rural and non-rural debts must be examined by the assessing officer based on separate accounts and records. en-us Fri, 09 Aug 2002 00:00:00 +0530 Tue, 13 Jan 2026 14:41:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62017 Interpretation of deductibility of bad and doubtful debts under section 36(1): the proviso limiting deduction to the excess over the provision created under clause viia is confined to debts arising from rural advances; debts actually written off that do not arise from rural advances are not restricted by that proviso and remain allowable. The provisos language and contemporaneous Board circulars indicate clause viia applies only to rural advances, so limitation applies only to rural bad debts. Factual allocation between rural and non-rural debts must be examined by the assessing officer based on separate accounts and records. Case-Laws Income Tax Fri, 09 Aug 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62017