JCIT(OSD) CORPORATE CIRCLE-1(1), CHENNAI vs. INDIAN BANK, CHENNAI

ITA 517/CHNY/2023Status: DisposedITAT Chennai20 November 2024AY 2016-1734 pages
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What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision, following its own precedents and those of other High Courts. It ruled that bad debts written off relating to non-rural advances do not need to be adjusted against provisions for bad and doubtful debts made under Section 36(1)(viia).

What were the facts?

The Revenue appealed against the CIT(A)'s order allowing the assessee bank's claim for deduction of bad debts under Section 36(1)(vii) of the Income Tax Act. The Assessing Officer had disallowed this deduction, arguing that the write-off was less than the provision made.

What were the issues?

Whether bad debts written off for non-rural advances need to be adjusted against provisions for bad and doubtful debts made under Section 36(1)(viia). Whether the deduction for bad debts is allowable irrespective of the provision made.

Which sections of the Income-tax Act were involved?

Section 36(1)(vii),Section 36(1)(viia)

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Income Tax Appellate Tribunal, B BENCH: CHENNAI

Before: SHRI ABY T VARKEYAND

PER AMITABH SHUKLA, A.M : These four appeals are filed by the revenue against the order bearing DIN & Order No.ITBA / NFAC / S /250 / 2022-23 / 1048327954(1), No.ITBA / NFAC / S /250 / 2022-23 / 1048320600(1), No.ITBA / NFAC / S / 250 / 2022-23/1048323698(1) and No.ITBA / NFAC / S / 250 / 2022-23/1048321468(1), dated 29.12.2022 of the Learned Commission

The order continues below.

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