https://www.taxtmi.com/caselaws?id=472212 Bank tax treatment of provisions, regulatory payments, bad-debt write-offs, exempt-income expenditure, wage arrears and investment valuation turns on the substance and classification of each item. A provision for non-performing assets maintained under regulatory norms may constitute a provision for bad and doubtful debts; security values need not reduce the eligible provision. Compensatory payments for regulatory non-compliance may qualify as business expenditure. Non-rural bad-debt write-offs require adjustment against the single provision account where a deduction for non-rural advances has been claimed. Expenditure on exempt income requires investment-specific analysis, including whether shares are stock-in-trade. Scientifically estimated wage arrears are ascertained liabilities. Stock-in-trade investments may use lower-of-cost-or-market valuation, while other investments remain at cost without depreciation. en-us Mon, 21 Apr 2025 00:00:00 +0530 Sun, 04 Oct 2026 18:35:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=472212 Bank tax treatment of provisions, regulatory payments, bad-debt write-offs, exempt-income expenditure, wage arrears and investment valuation turns on the substance and classification of each item. A provision for non-performing assets maintained under regulatory norms may constitute a provision for bad and doubtful debts; security values need not reduce the eligible provision. Compensatory payments for regulatory non-compliance may qualify as business expenditure. Non-rural bad-debt write-offs require adjustment against the single provision account where a deduction for non-rural advances has been claimed. Expenditure on exempt income requires investment-specific analysis, including whether shares are stock-in-trade. Scientifically estimated wage arrears are ascertained liabilities. Stock-in-trade investments may use lower-of-cost-or-market valuation, while other investments remain at cost without depreciation. Case-Laws Income Tax Mon, 21 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=472212