Vijaya Bank v. CIT

323 ITR 166Supreme Court of India2010#188 most cited

What is Vijaya Bank v. CIT authority for?

A provision for bad and doubtful debts debited to the profit and loss account and reduced from advances on the balance sheet constitutes a write-off for deduction purposes. This is true even if individual debtor accounts are not closed.

392

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2011 to 2026.

Also referred to as

Vijaya Bank v. CIT · section 36(1)(vii) · write off bad debts · provision for doubtful debts · deduction for bad debts · profit and loss account · balance sheet · advances · loans

Also reported as

190 Taxmann 257231 CTR 209

Sections most often in play

Section 36(1)(vii)Section 143(3)Section 14ASection 115JBSection 37(1)Section 36(1)(viia)Section 32(1)(iia)Section 10(34)
Read the full judgment

Issues it is cited on

section 36(2)(v)section 41(4)section 36(1)(viia)section 36(1)(vii)section 36(2)section 36(1)(viii)section 115jb(2)additional depreciationsection 10(34)book profitssection 41section 115j

Judgments citing Vijaya Bank v. CIT

The Commissioner of Income tax III vs. Biraj Kavar Galada

ITTA/98/2010HC Telangana29 Feb 2016

Bench: RAMESH RANGANATHAN,M.SATYANARAYANA MURTHY

Indian Overseas Bank, Chennai vs. DCIT, Chennai

In the result, the assessee appeals ITA Nos

ITA 496/CHNY/2015[2010-2011]Status: DisposedITAT Chennai22 Feb 2016AY 2010-2011

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri. R. Vijayaraghavan, Advocate and Shri.C. Naresh, C.AFor Respondent: Shri. Shaji P. Jacob, Adl. CIT
Section 263Section 36Section 36(1)Section 36(1)(viia)

…, and also legislative intention behind introduction of Sec.36(1)(viia) to encourage rural advances and to creation of provision for bad debts and further the High Court has decided the case based on the Apex Court decision in the case of Vijaya Bank vs. CIT 323 ITR 166 and Southern Technologies vs. Jt. CIT 320 ITR 577 and also accounting standard AS29 and board’s circulars and relevant provisions of law. The ld. Commissioner of Income Tax observed principles laid down by Catholic Syrian Bank in para 4.6 at page no.5 as under:- ‘’The principles laid down by the decision in Catholic Syrian bank can be summari…

N L C Nalco India Ltd Previously Known As Ondeo Nalco India Ltd., Kolkata vs. ACIT, Cir - 11, Kolkata

In the result, the appeal of assessee in ITA No

ITA 1256/KOL/2009[2004-05]Status: DisposedITAT Kolkata03 Feb 2016AY 2004-05

Bench: Shri Mahavir Singh, Jm& Shri Waseem Ahmed, Am]

For Appellant: Shri Soumitra Chowdhury, AdvocateFor Respondent: Shri D. Mallikarjuna &
Section 143(3)Section 36(1)(vii)

…r any assessee to establish that the debt in fact has become bad. It is further held that if the debt has been written off in the books of accounts then it would be enough to allow the deduction. Further, Hon'ble Supreme Court in the case of Vijaya Bank v CIT 323 ITR 166 (SC) wherein Hon'ble Court has held that in order to allow the bad debt which is written off through the provision account, the only conditions that are required to be fulfilled may be stated as under: That the bad debt has to be actually written off through the provision account created earlier and That the sundry debtors balance at the year-end…

Nlc Nalco India Ltd., Kolkata vs. ACIT, Circle - 11, Kolkata

In the result, the appeal of assessee in ITA No

ITA 529/KOL/2008[2003-04]Status: DisposedITAT Kolkata03 Feb 2016AY 2003-04

Bench: Shri Mahavir Singh, Jm& Shri Waseem Ahmed, Am]

For Appellant: Shri Soumitra Chowdhury, AdvocateFor Respondent: Shri D. Mallikarjuna &
Section 143(3)Section 36(1)(vii)

…r any assessee to establish that the debt in fact has become bad. It is further held that if the debt has been written off in the books of accounts then it would be enough to allow the deduction. Further, Hon'ble Supreme Court in the case of Vijaya Bank v CIT 323 ITR 166 (SC) wherein Hon'ble Court has held that in order to allow the bad debt which is written off through the provision account, the only conditions that are required to be fulfilled may be stated as under: That the bad debt has to be actually written off through the provision account created earlier and That the sundry debtors balance at the year-end…

DCIT vs. Treads Direct Limited, Coimbatore

In the result, the appeal of the assessee is partly allowed for statistical purposes and the appeal of the Revenue is dismissed

ITA 2941/CHNY/2014[2010-11]Status: DisposedITAT Chennai30 Dec 2015AY 2010-11

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri. Philip George, Advocate
Section 143(1)Section 143(2)Section 143(3)Section 36Section 36(1)

…ys vs. CIT (2004) 265 ITR 420. Further in the appellate proceedings before the Commissioner of Income Tax (Appeals) the assessee has filed written submissions and relied upon the decision of Supreme Court in the case of Vijaya Bank vs. CIT and Others (2010) 323 ITR 166 wherein it has been held that there is no need to debit the accounts of debtors and need not be squared off and the claim can be allowed subject to verification by Assessing Officer on the accounting treatment. The ld.CIT(A) relied on the findings of the Assessing Officer and considered that such provisions are against principles of Section 36…

Treadsdirect Limited, Coimbatore vs. JCIT, Coimbatore

In the result, the appeal of the assessee is partly allowed for statistical purposes and the appeal of the Revenue is dismissed

ITA 2794/CHNY/2014[2010-2011]Status: DisposedITAT Chennai30 Dec 2015AY 2010-2011

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri. Philip George, Advocate
Section 143(1)Section 143(2)Section 143(3)Section 36Section 36(1)

…ys vs. CIT (2004) 265 ITR 420. Further in the appellate proceedings before the Commissioner of Income Tax (Appeals) the assessee has filed written submissions and relied upon the decision of Supreme Court in the case of Vijaya Bank vs. CIT and Others (2010) 323 ITR 166 wherein it has been held that there is no need to debit the accounts of debtors and need not be squared off and the claim can be allowed subject to verification by Assessing Officer on the accounting treatment. The ld.CIT(A) relied on the findings of the Assessing Officer and considered that such provisions are against principles of Section 36…

Allahabad Bank, Kolkata vs. ACIT, Circle - 6, Kolkata

In the result the appeal of the assessee is allowed

ITA 2967/KOL/2003[2000-01]Status: DisposedITAT Kolkata09 Dec 2015AY 2000-01

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri Waseem Ahmed, Am] Assessment Year : 2000-01

For Appellant: Shri B.K.Ghosh, FCA & Sjhri Piyush Dey, FCAFor Respondent: Shri G.Mallikarjuna, CIT(DR)
Section 29Section 30Section 37

…he concerned assessment years when it was found that the amount was not recoverable. Reference in this connection can be made to the judgments of the Supreme Court in the case of Vijaya Bank vs CIT & Anr. (2010) 231 CTR (SC) 209 : (2010) 37 DTR (SC)401 (2010) 323 ITR 166 (SC) and T.R.F.Ltd vs CIT (2010) 230 CTR (SC) 14 : (2010) 35 DTR (SC) 156 : (2010) 323 ITR 397 (SC).” 7. The next decision is the decision rendered by ITAT, Hyderabad Bench in the case of Andhra bank vs DCIT in ITA No.218/H/10 order dated 04.04.2013. In the aforesaid decision ITAT took the following view :- “59. The next is regarding deduction o…

DCIT, Bangalore vs. M/S Grameen Financial Services Pvt. Ltd., Bangalore

In the result, the appeal by the Revenue is dismissed

ITA 949/BANG/2015[2011-12]Status: DisposedITAT Bangalore06 Nov 2015AY 2011-12

Bench: Smt. Asha Vijayaraghavan & Shri Jason P. Boazassessment Year : 2011-12

For Appellant: Ms. Neera Malhotra, CIT(DR)For Respondent: Shri Shesadri, CA
Section 143(3)Section 14A

…t has not created a provision for doubtful debts, but has actually written off the entire amount of Rs.4,52,73,321 by credit to the relevant advances account thus reducing the assets correspondingly. The assessee relied on the decisions of Vijaya Bank v. CIT, 323 ITR 166 (SC) and CIT v. Girish Bhagawatprasad, 256 ITR 772,773 (Guj). 19. The CIT(Appeals) relying on the Hon’ble jurisdictional High Court decision in the case of CIT v. Krone Communication Ltd., 333 ITR 497 (Karn) allowed the assessee’s appeal on this issue. 20. Aggrieved the department is in appeal and has raised ground No.3 as follows:- “3. On the…

ACIT, Mangalore vs. M/S Corporation Bank, Mangalore

In the result, appeal of the revenue stands dismissed

ITA 1264/BANG/2013[2011-12]Status: DisposedITAT Bangalore11 Mar 2015AY 2011-12

Bench: Shri Rajpal Yadav & Shri Abraham P George

For Appellant: Shri S. Ananthan, CAFor Respondent: Dr. P.K.Srihari, Addl.CIT
Section 36(1)Section 36(1)(vii)Section 36(1)(viia)Section 36(1)(viiia)

…provisions of a section have to be interpreted on their plain language and could not be interpreted on the basis of apprehension of the Department. This Court, in the case of Vijaya Bank vs. CIT &Anr. (2010) 231 CTR (SC) 209 : (2010) 37 DTR (SC) 401 : (2010) 5 SCC 416, held that under the accounting practice, the accounts of the rural branches have to tally with the accounts of the head office. If the repaid amount in subsequent years is not credited to the P&L a/c of the head office, which is what ultimately matters, then there would be a mismatch between the rural branch accounts and the head office accounts.…

Catholic Syrian Bank Ltd vs. Commissioner of Income Tax, Thrissur

C.A. No.-001143-001143 - 2011Supreme Court17 Feb 2012
Section 143(1)Section 143(2)Section 143(3)Section 36Section 36(1)(vii)Section 36(1)(viia)

…on. Furthermore, the provisions of a section have to be interpreted on their plain language and could not be interpreted on the basis of apprehension of the Department. This Court, in the case of Vijaya Bank v. Commissioner of Income Tax & Anr. [(2010) 5 SCC 416], held that under the accounting practice, the accounts of the rural branches have to tally with the accounts of the head office. If the repaid amount in subsequent years is not credited to the profit and loss account of the head office, which is what ultimately matters, then there would be a mismatch between the rural branch accou…

CIT vs. Sir Shadi Lal Enterprises Ltd

ITA - 452 / 2011HC Delhi16 Nov 2011
Section 260ASection 271(1)(c)Section 36(1)(VII)Section 36(1)(vii)

…rved that the respondent assessee had failed to comprehend the full import and effect of the amendment. Even after the amendment by the Finance Act, 2001, the matter was considered and decided by the Supreme Court in Vijaya Bank versus CIT and Another, (2010) 323 ITR 166 (SC). This decision is dated 15th April, 2010. The Supreme Court in paragraph 2 of their decision specifically referred to the question raised and has elucidated the legal principles judgments. referring several to relying and after Page **6** of **7** ITA No. 452/2011 ![](_page_6_Picture_1.jpeg) judgments. The provision has been held to be…

Commissioner of Income Tax vs. Agricultural Market Committee

ITTA/134/2011HC Telangana20 Apr 2011

Bench: V.V.S.RAO,RAMESH RANGANATHAN