https://www.taxtmi.com/caselaws?id=35183 An NBFC's provision for non-performing assets under RBI Directions, 1998 is a prudential disclosure item and not a tax-deductible write-off under the Income-tax Act, 1961. The Court distinguished RBI accounting and disclosure norms from computation of taxable income, holding that such a notional provision may be added back where the Act so requires. It further ruled that the provision is not deductible under section 36(1)(vii) or section 37(1), because those provisions require an actual write-off or specific statutory allowance. RBI Directions do not override the Income-tax Act, and sections 36(1)(viia) and 43D were upheld as constitutionally valid. en-us Mon, 11 Jan 2010 00:00:00 +0530 Mon, 15 Sep 2025 14:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35183 An NBFC's provision for non-performing assets under RBI Directions, 1998 is a prudential disclosure item and not a tax-deductible write-off under the Income-tax Act, 1961. The Court distinguished RBI accounting and disclosure norms from computation of taxable income, holding that such a notional provision may be added back where the Act so requires. It further ruled that the provision is not deductible under section 36(1)(vii) or section 37(1), because those provisions require an actual write-off or specific statutory allowance. RBI Directions do not override the Income-tax Act, and sections 36(1)(viia) and 43D were upheld as constitutionally valid. Case-Laws Income Tax Mon, 11 Jan 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35183