https://www.taxtmi.com/caselaws?id=59736 A provision for irrecoverable advances made by an NBFC was not deductible as bad debt because the amount was only a provision in the profit and loss account, not an actual write-off of a debt as required under section 36(1)(vii). The retrospective Explanation to that provision expressly excludes provisions for bad and doubtful debts from deduction, and RBI prudential directions for NBFCs do not create an income-tax deduction where the Act denies it. The alternative claim for treatment as business loss also failed, since the statutory bar could not be bypassed by recharacterising the same provision. en-us Tue, 14 Mar 2006 00:00:00 +0530 Fri, 31 Dec 2010 18:03:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59736 A provision for irrecoverable advances made by an NBFC was not deductible as bad debt because the amount was only a provision in the profit and loss account, not an actual write-off of a debt as required under section 36(1)(vii). The retrospective Explanation to that provision expressly excludes provisions for bad and doubtful debts from deduction, and RBI prudential directions for NBFCs do not create an income-tax deduction where the Act denies it. The alternative claim for treatment as business loss also failed, since the statutory bar could not be bypassed by recharacterising the same provision. Case-Laws Income Tax Tue, 14 Mar 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59736