TaxTMI 
TaxTMI 
2025 (11) TMI 914
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.... The assessee raised the following grounds- "1. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in confirming the action of the Ld. AO in denying deduction of Rs. 39,24,481 under Section 36(1)(viia) of the Income Tax Act, 1961 (Act') towards the provision for bad and doubtful debts. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) and the Ld. AO erred in holding that the Appellant had not made any provision towards bad and doubtful debts in the books of account, ignoring the documents and information submitted by the Appellant. 3. On the facts and circumstances of the case and in law, the Ld. CIT(A) and the Ld. AO erred in holding that the Appellant was requi....
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....ocuments to substantiate the claim for deduction u/s. 36(1)(viia) a. Audited Financials & Annual Report of the assessee Bank for A.Y. 2007-08. b. Audited Financials & Annual Report of the assessee Bank for A.Y. 2006-07 c. Ledger copies of Provision for Bad and Doubtful Debts for A.Y. 2007-08 d. Ledger copies of Provision for Interest Accrued on Standard Assets for A.Y. 2007-08. e. Copy of "Statement of Memorandum of Changes" issued by Statutory Auditor for A.Y. 2007-08 in pursuance of which Provision for Bad and Doubtful Debts of Rs. 45 lacs is created by the assessee. f. Explanation for creation of Provisions for Interest Accrued on Standard Assets out of appropriation of net profit for....
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....he submission by the assessee and the fact that the assessee has not made any provision of bad & doubtful debts in the P&L A/c in A.Y 2007-08 and moreover has transferred the amount of Rs. 45,00,000/- from 'Provision for Interest on Standard Assets' to 'Bad Debts Reserve' on 13/07/2007 in A.Y 2008-09, the claim of the assessee of Rs. 39,24,481/- u/s. 36(1)(viia) of the Act is not allowable in A.Y 2007-08. 6. The total income of the assessee is remains unchanged at Rs. 5,51,51,630/- (As per order u/s. 143(3) of the Act dated 27.11.2009)." 4. On further appeal, the ld. CIT(A) confirmed the disallowance stating that in order to become eligible for deduction u/s. 36(1)(viia) the assessee is required to make the provi....
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.... ld. AR also drew our attention to the audited financial statements for the year ended 31.03.2007 in support of the claim that the entry pertaining to the transfer of provision was passed in the financial statements for the year ended 31.03.2007 (page 106 of paper book) where the provision for bad and doubtful debts as increase from Rs. 31,10,00,000/- to Rs. 31,55,00,000/-. The ld. AR submitted that the assessee during the year under consideration based on audit recommendation towards transfer of provision from standard asset to provision for bad and doubtful debts and has claimed deduction u/s. 36(1)(viia) against the same. The AR accordingly submitted that the AO has not appreciated the said fact and made the disallowance stating that the....