https://www.taxtmi.com/caselaws?id=65277 A provision for bad and doubtful debts created by an NBFC under RBI prudential norms is not deductible under section 36(1)(vii) because the retrospective Explanation inserted by the Finance Act, 2001 restricts the deduction to debts actually written off in the accounts and excludes mere provisions. RBI norms and section 45Q of the RBI Act do not override the Income-tax Act's statutory scheme. As the legal position was clear from the retrospective amendment, the disallowance was not a debatable issue and was capable of correction by rectification under section 154. en-us Thu, 20 Dec 2007 00:00:00 +0530 Mon, 23 Jul 2012 18:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=65277 A provision for bad and doubtful debts created by an NBFC under RBI prudential norms is not deductible under section 36(1)(vii) because the retrospective Explanation inserted by the Finance Act, 2001 restricts the deduction to debts actually written off in the accounts and excludes mere provisions. RBI norms and section 45Q of the RBI Act do not override the Income-tax Act's statutory scheme. As the legal position was clear from the retrospective amendment, the disallowance was not a debatable issue and was capable of correction by rectification under section 154. Case-Laws Income Tax Thu, 20 Dec 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=65277