https://www.taxtmi.com/caselaws?id=402534 The Karnataka High Court, in an appeal under Section 260-A of the Income Tax Act, 1961 for Assessment Year 2009-10, addressed the interpretation of Section 36(1)(viia). The Court held that the creation of a requisite reserve is necessary for claiming under Section 36(1)(viia) and restricted the deductible amount to the provision for bad and doubtful debts created in the relevant year. The Court also disallowed the deduction for the shortfall between the upper limit under Section 36(1)(viia) and the actual provision. The appeal was dismissed in favor of the revenue, as previous judgments had already addressed and ruled against the assessee on similar issues. en-us Mon, 14 Dec 2020 00:00:00 +0530 Tue, 05 Jan 2021 11:13:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=402534 The Karnataka High Court, in an appeal under Section 260-A of the Income Tax Act, 1961 for Assessment Year 2009-10, addressed the interpretation of Section 36(1)(viia). The Court held that the creation of a requisite reserve is necessary for claiming under Section 36(1)(viia) and restricted the deductible amount to the provision for bad and doubtful debts created in the relevant year. The Court also disallowed the deduction for the shortfall between the upper limit under Section 36(1)(viia) and the actual provision. The appeal was dismissed in favor of the revenue, as previous judgments had already addressed and ruled against the assessee on similar issues. Case-Laws Income Tax Mon, 14 Dec 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=402534