DEPUTY COMMISSIONER OF INCOME TAX NON CORP CIRCLE II MADURAI, MADURAI vs. VIRUDHUNAGAR DISTRICT CENTRAL CO OP BANK LIMITED, VIRUDHUNAGAR

ITA 2699/CHNY/2025Status: DisposedITAT Chennai28 January 2026AY 2013-1419 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the deduction under Section 36(1)(viia) is restricted to the actual provision made in the books of account, subject to the statutory ceiling. The statutory percentages are upper limits, not an automatic entitlement regardless of the book provision.

What were the facts?

The assessee, a co-operative bank, claimed a deduction under Section 36(1)(viia) of the Income-tax Act for bad and doubtful debts. The Assessing Officer restricted the deduction to the actual provision made in the books, while the assessee argued for a deduction based on statutory percentages irrespective of the book provision.

What were the issues?

Whether the deduction for bad and doubtful debts under Section 36(1)(viia) is limited to the actual provision made in the books or can be claimed based on statutory percentages irrespective of the book provision.

Which sections of the Income-tax Act were involved?

Section 36(1)(viia)

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Cases cited in this judgment(4)Show list

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Heard together (2 matters)

C.O.No.92/Chny/2025
C.O.No.93/Chny/2025

Read from the judgment's own cause title. This page is filed under one of them.

आयकर अपीलीय अधिकरण, 'बी' न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL 'B' BENCH: CHENNAI सुश्री पद्मावती एस, लेखासदस्यकेसमक्ष श्रीमनुकुमारगिरि, न्यायिकसदस्य एवं BEFORE MS. PADMAVATHY S, ACCOUNTANT MEMBER AND SHRI MANU KUMAR GIRI, JUDICIAL MEMBER आयकर अपीलसं/.ITA Nos.: 2699/Chny/2025 &2700/Chny/2025 by Revenue C.O.No.92/Chny/2025 (in ITA No.: 2699/Chny/2025)& C.O.No.93/Chny/2025 (in ITA No.: 2700/Chny/2025) by Assessee निर्धारणवर्ष / Assessment Years: 2013-14 & 2015-16 DCIT, Non Corp Circle II, Madurai, V.P. Rathinasamy Nadar Road, BB Kulam Madurai-625002, Madurai, Tamil Nadu (अपीलार्थी/Assessee) v. VIRUDHUNAGAR DISTRICT CENTRAL CO-OPERATIVE BANK LIMITED 104/1, Madurai Road, Kamaraj Nagar, S.O.

Virudhunagar,Virudhunagar- 626001. Tamil Nadu [PAN:AAAAV 0147 N] (प्रत्यर्थी/Respondent) अपीलार्थीकीओरसे//Assessee by Mr. R. Prasanna Venkatesan, F.C.A. प्रत्यर्थीकी ओरसे Respondent/Revenue by Mr. Shiva Srinivas, CIT सुनवाईकीतारीख/Date of Hearing 20.01.2026 घोषणाकीतारीख /Date of Pronouncement 28.01.2026 :-2-: ITA 2699 & 2700 Chny 2025 FY 2013-14, 2015-16 In CO-92 Cheny 2025 in ITA No 2699 Chny 2025 आदेश/O

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