https://www.taxtmi.com/caselaws?id=372499 The Madras High Court ruled in favor of the assessee, a Government of Tamil Nadu company, in a case concerning the interpretation of Section 36(1)(viia)(c) proviso under the Income-tax Act, 1961. The Court held that the assessee was entitled to a deduction under the proviso despite declaring a loss in its income tax returns. The Court emphasized that the proviso aimed to incentivize provisioning for bad and doubtful debts in the financial sector, and it should be interpreted in line with this objective. The Court upheld the decisions of the lower authorities, dismissing the Revenue's appeal without costs. en-us Tue, 13 Nov 2018 00:00:00 +0530 Thu, 12 Mar 2020 17:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=372499 The Madras High Court ruled in favor of the assessee, a Government of Tamil Nadu company, in a case concerning the interpretation of Section 36(1)(viia)(c) proviso under the Income-tax Act, 1961. The Court held that the assessee was entitled to a deduction under the proviso despite declaring a loss in its income tax returns. The Court emphasized that the proviso aimed to incentivize provisioning for bad and doubtful debts in the financial sector, and it should be interpreted in line with this objective. The Court upheld the decisions of the lower authorities, dismissing the Revenue's appeal without costs. Case-Laws Income Tax Tue, 13 Nov 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=372499