2016 (12) TMI 171

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....rder dated 29.12.2011. 2. Brief facts of the case are that the assessee is an Industrial Investment Bank. For the AY 2009-10 it had filed revised return of income on 29.03.2010 declaring a loss of Rs. 74,72,10,744/-. The AO disallowed bad debts written off to a tune of Rs. 51,95,96,000/-. According to assessee, it had written back a sum of Rs. 207,51,95,000/- out of provision made for doubtful debts and reduced the same while computing book profit u/s. 115JB of the Act. Challenging the disallowance of Rs. 51,95,96,000/- the assessee carried the matter in appeal before the Ld. CIT(A), who by way of impugned order dismissed the relevant ground on this issue and upheld the disallowance. 3. Aggrieved by the same, the assessee is in appeal....

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.... through facts and circumstances of the case. Under section 36(1)(viia)(c) of the Act, a State Industrial Investment Corporation shall be allowed deductions in respect of any provision for bad and doubtful debts made by it, an amount not exceeding 5% of the total income computed before making any deduction under that particular clause and Chapter VIA. Proviso to section36(1)(vii) of the Act states that to the assessee to whom clause (viia) of the Act applies, the amount of bad debt or part thereof which is written off as irrecoverable in the account of the assessee for the previous year, the amount of the deduction relating to any such debt or part thereof shall be limited to the amounts by which such debt or part thereof exceeds the credit....