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 367,154 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

M/S. Bajaj Auto Ltd., Mumbai vs. The Dy CIT RG 3(1), Mumbai

In the result, the appeals filed by the assesse are partly allowed and the appeals filed by the revenue are dismissed

ITA 2125/MUM/2005[1999-2000]Status: DisposedITAT Mumbai28 Nov 2023AY 1999-2000

Bench: Aby T Varkey & Shri Amarjit Singh

For Appellant: Ms. Vasanti Patel & Shri CharuFor Respondent: Shri. Krishna Bandi
Section 143(2)Section 143(3)

…ical manner had added provision for doubtful debts. The CIT(A) directed the Assessing Officer to delete the addition. The Revenue carried the issue in appeal before the Tribunal. The Tribunal following the decision rendered in the case of Vijaya Bank vs. CIT, 323 ITR 166 (SC) upheld the findings of CIT(A) and dismissed the ground raised by the Revenue. In the impugned assessment year there is no change in the facts. Consequently, the ground No.6 raised in the appeal by the Revenue is dismissed. 103. Respectfully following the above decision and following the principle of consistency, the view taken by the Tribuna…

The Dy CIT RG 3(1), Mumbai vs. M/S. Bajaj Auto Ltd, Mumbai

In the result, the appeals filed by the assesse are partly allowed and the appeals filed by the revenue are dismissed

ITA 1933/MUM/2005[1999-2000]Status: DisposedITAT Mumbai28 Nov 2023AY 1999-2000

Bench: Aby T Varkey & Shri Amarjit Singh

For Appellant: Ms. Vasanti Patel & Shri CharuFor Respondent: Shri. Krishna Bandi
Section 143(2)Section 143(3)

…ical manner had added provision for doubtful debts. The CIT(A) directed the Assessing Officer to delete the addition. The Revenue carried the issue in appeal before the Tribunal. The Tribunal following the decision rendered in the case of Vijaya Bank vs. CIT, 323 ITR 166 (SC) upheld the findings of CIT(A) and dismissed the ground raised by the Revenue. In the impugned assessment year there is no change in the facts. Consequently, the ground No.6 raised in the appeal by the Revenue is dismissed. 103. Respectfully following the above decision and following the principle of consistency, the view taken by the Tribuna…

Icici Bank Ltd, Mumbai vs. Addl CIT RG (1), Mumbai

Appeals are partly allowed

ITA 4248/MUM/2014[2007-08]Status: DisposedITAT Mumbai09 Nov 2023AY 2007-08

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

Section 10(15)Section 115JSection 234BSection 41(4)Section 88ESection 90

…provisions and the assessee is no more required to establish that the debt has actually become irrecoverable. The Hon'ble Supreme Court in TRF Ltd. v/s CIT, [2010] 230 ITR 14 (SC), has expressed this view. Further, in case of Vijaya Bank Ltd. v/s CIT, [2010] 323 ITR 166 (SC), the Hon'ble Apex Court held that mere debit to the Profit & Loss account is not sufficient to claim write-off as the assessee has to simultaneously reduce the amount from loans and advances or debtors on assets side of the Balance Sheet to claim right-off. The Hon'ble Supreme Court observed, closing down individual,,account of each debtor i…

DCIT Cir 3(1), Mumbai vs. Icici Bank Ltd, Mumbai

Appeals are partly allowed

ITA 4158/MUM/2014[2007-08]Status: DisposedITAT Mumbai09 Nov 2023AY 2007-08

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

Section 10(15)Section 115JSection 234BSection 41(4)Section 88ESection 90

…provisions and the assessee is no more required to establish that the debt has actually become irrecoverable. The Hon'ble Supreme Court in TRF Ltd. v/s CIT, [2010] 230 ITR 14 (SC), has expressed this view. Further, in case of Vijaya Bank Ltd. v/s CIT, [2010] 323 ITR 166 (SC), the Hon'ble Apex Court held that mere debit to the Profit & Loss account is not sufficient to claim write-off as the assessee has to simultaneously reduce the amount from loans and advances or debtors on assets side of the Balance Sheet to claim right-off. The Hon'ble Supreme Court observed, closing down individual,,account of each debtor i…

ACIT, New Delhi vs. M/S. Comfort Net Traders (I) (P) Ltd., New Delhi

In the result, the appeal of the assessee is allowed

ITA 457/DEL/2015[2011-12]Status: DisposedITAT Delhi19 Oct 2023AY 2011-12

Bench: Shri N.K. Billaiya & Shri Challa Nagendra Prasad

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Shri Vivek Kumar Upadhyay, Sr. DR

…t is for the assessee to decide whether the debt has become bad or not and whether the same had been accounted for in its books of account. Drawing support from the decision of the Hon'ble Supreme Court in the case of TRF Limited 323 ITR 397 and Vijaya Bank 323 ITR 166, the ld. CIT(A) deleted the addition. 10. The ld. DR placed strong reliance on the findings of the Assessing Officer and read the relevant operative part. 11. Per contra, the ld. counsel for the assessee reiterated what has been stated before the lower authorities. 12. We have carefully considered the factual matrix and are of the opinion tha…

M/S. Comfort Net Traders (I) (P) Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 6791/DEL/2014[2011-12]Status: DisposedITAT Delhi19 Oct 2023AY 2011-12

Bench: Shri N.K. Billaiya & Shri Challa Nagendra Prasad

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Shri Vivek Kumar Upadhyay, Sr. DR

…t is for the assessee to decide whether the debt has become bad or not and whether the same had been accounted for in its books of account. Drawing support from the decision of the Hon'ble Supreme Court in the case of TRF Limited 323 ITR 397 and Vijaya Bank 323 ITR 166, the ld. CIT(A) deleted the addition. 10. The ld. DR placed strong reliance on the findings of the Assessing Officer and read the relevant operative part. 11. Per contra, the ld. counsel for the assessee reiterated what has been stated before the lower authorities. 12. We have carefully considered the factual matrix and are of the opinion tha…

Kaizen Cold Formed Steel Private Limited, Chennai vs. ACIT, Corp Circle-4(2), Chennai

The appeal stand allowed in terms of our above order

ITA 172/CHNY/2023[2017-18]Status: DisposedITAT Chennai05 Oct 2023AY 2017-18

Bench: Hon’Ble Shri V. Durga Rao, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.172/Chny/2023 (िनधा"रण वष" / Assessment Year: 2017-18) M/S.Kaizen Cold Formed Steel Pvt.Ltd, Acit बनाम 14A, Ennore High Road, Corporate Circle-4(2), / Vs. Thiruvottiyur, Chennai-600 019. Chennai. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aadck-7625-B (अपीलाथ"/Appellant) : (!"थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Ms. V.Madhunika (Advocate)-Ld.Ar !"थ"कीओरसे/Respondent By : Shri R.Raghupathy (Jcit)- Ld.Dr सुनवाईकीतारीख/Date Of Hearing : 03-10-2023 घोषणाकीतारीख /Date Of Pronouncement : 05-10-2023 आदेश / O R D E R

For Appellant: Ms. V.Madhunika (Advocate)-Ld.ARFor Respondent: Shri R.Raghupathy (JCIT)- Ld.DR
Section 143(3)Section 250Section 36

…as H. Dhanjibhai Bardanwala v. CIT MANU/GJ/0051/1980 However, the Impugned Order neither mentioned nor distinguishes the above- mentioned judgements. 8.The Impugned Order merely references the decision of the Hon'ble Supreme Court in Vijaya Bank v. CIT [2010] 323 ITR 166 (SC) and distinguishes it on the ground that it is a decision rendered in the specific context of banking companies. However, a bare perusal of the above-mentioned decision of the Hon'ble Supreme Court reveals that the decision was rendered in the context of Section 36(1 )(vii) and even makes a specific reference to the above-mentioned decision o…

Idbi Bank Ltd., Mumbai vs. ACIT-Ltu(2), Mumbai

In the result, appeal of the revenue is dismissed

ITA 4596/MUM/2019[2016-17]Status: DisposedITAT Mumbai28 Sept 2023AY 2016-17

Bench: Shri Kuldip Singh & Shri Gagan Goyalidbi Bank Ltd. 22Nd Floor, Idbi Tower, Wtc Complex, Cuffe Parade, Mumbai- 400 005. Pan: Aabci8842G ..... Appellant Vs. Acit Ltu (2) World Trade Centre, Cuffe Parade, Mumbai ..... Respondent

For Appellant: NoneFor Respondent: None
Section 115JSection 143(1)Section 143(3)Section 14ASection 250Section 36(1)Section 36(2)Section 40

…so that at the end of the year, the amount of loans and advances is shown net of the impugned bad debts, it amounts to write off of the debt for which assessee is entitled to deduction u/s. 36(1)(viia) as held by Hon'ble Supreme Court in case of Vijaya Bank (323 ITR 166). As stated above, in assessee’s case, the provision made and held in books is reduced from advances in Balance Sheet. This is evident from the significant accounting policy as disclosed in annual Report. In view of the above, it is IDBI Bank Ltd. respectfully submitted that the amount of Rs. 5299 crore claimed by assessee should have been allow…

ACIT, Circle-7(1), New Delhi vs. Delhi State Industrial and Infrastructure Development Corporation Ltd., New Delhi

In the result, the captioned appeal of the Revenue is dismissed

ITA 7265/DEL/2019[2011-12]Status: DisposedITAT Delhi26 Sept 2023AY 2011-12

Bench: Sh. Pradip Kumar Kedia & Sh. Yogesh Kumar Usacit Vs. Delhi State Industrial & Circle – 7(1) Infrastructure Development New Delhi Corporation Ltd., N-36, Bombay Life Building, Connaught Circus, Pan No. Aaacd 1257 F New Delhi-110 001 (Appellant) (Respondent) Assessee By Shri Yogesh Jain & Shri Shobhit Kansal, C.A. Revenue By Shri Sanjay Kumar, Sr. D.R. Date Of Hearing: 27.06.2023 Date Of Pronouncement: 26.09.2023 Per Pradip Kumar Kedia, Am : The Captioned Appeal Has Been Filed By The Revenue Against The Order Of The Ld. Commissioner Of Income Tax (Appeals) – 2, New Delhi (‘Cit(A)’ In Short) Dated 28.06.2019 Arising From The Assessment Order Dated 28.11.2018 Passed By The Assessing Officer (Ao) Under Section 147/143(3)/263 Of The Income Tax Act, 1961 (The Act) Concerning Assessment Year 2011-12. 2. The Ground Of Appeal Raised By Assessee Reads As Under:

Section 115JSection 147Section 148

…es on asset side of balance sheet. Only the nomenclature used was 'provision for bad debts'. Hence, it was not just a provision but an actual write off of bad debts and very much allowable in view of decision of the Supreme Court in Vijaya Bank Vs. CIT [2010] 323 ITR 166 (SC). However, it was added back in computation of normal profit inadvertently and the appellant has also paid tax on this without agitating. 6.4 However, it has agitated adding back of this amount in the book profit. It submitted that invoking of 115JB(2) explanation 1(c) as unascertained liabilities by the AO is not correct because bad debts a…

Pr. Commissioner of Income Tax-7 vs. Oriental Bank of Commerce Ltd (Now Merged With Punjab National Bank Ltd.)

ITA/522/2023HC Delhi13 Sept 2023

Bench: HON'BLE MR. JUSTICE RAJIV SHAKDHER,HON'BLE MR. JUSTICE GIRISH KATHPALIA

Section 14ASection 36(1)(vii)

…Page 6 of 6 made for bad and doubtful debts. 13. As noted by the Tribunal, this issue is squarely covered in favour of the respondent/assessee by virtue of the judgment rendered by the Supreme Court in Vijaya Bank v. CIT, [2010] 323 ITR 166. 14. Thus, for the foregoing reasons, we are not inclined to entertain the above-captioned appeals. 15. As noted above, no substantial question of law arises qua any of the issues noted above. 16. The appeals are, accordingly, closed. 17. Consequently, the pending applications shall also stand closed. 18. Parties will act based on t…

Pr. Commissioner of Income Tax-7 vs. Oriental Bank of Commerce Ltd (Now Merged With Punjab National Bank Ltd.)

ITA/521/2023HC Delhi13 Sept 2023

Bench: HON'BLE MR. JUSTICE RAJIV SHAKDHER,HON'BLE MR. JUSTICE GIRISH KATHPALIA

Section 14ASection 36(1)(vii)

…Page 6 of 6 made for bad and doubtful debts. 13. As noted by the Tribunal, this issue is squarely covered in favour of the respondent/assessee by virtue of the judgment rendered by the Supreme Court in Vijaya Bank v. CIT, [2010] 323 ITR 166. 14. Thus, for the foregoing reasons, we are not inclined to entertain the above-captioned appeals. 15. As noted above, no substantial question of law arises qua any of the issues noted above. 16. The appeals are, accordingly, closed. 17. Consequently, the pending applications shall also stand closed. 18. Parties will act based on t…

Pr. Commissioner of Income Tax-7 vs. Oriental Bank of Commerce Ltd (Now Merged With Punjab National Bank Ltd.)

ITA - 522 / 2023HC Delhi13 Sept 2023
Section 14ASection 36(1)(vii)

…Page 6 of 6 made for bad and doubtful debts. 13. As noted by the Tribunal, this issue is squarely covered in favour of the respondent/assessee by virtue of the judgment rendered by the Supreme Court in Vijaya Bank v. CIT, [2010] 323 ITR 166. 14. Thus, for the foregoing reasons, we are not inclined to entertain the above-captioned appeals. 15. As noted above, no substantial question of law arises qua any of the issues noted above. 16. The appeals are, accordingly, closed. 17. Consequently, the pending applications shall also stand closed. 18. Parties will act based on t…

Pr. Commissioner of Income Tax-7 vs. Oriental Bank of Commerce Ltd (Now Merged With Punjab National Bank Ltd.)

ITA - 521 / 2023HC Delhi13 Sept 2023
Section 14ASection 36(1)(vii)

…Page 6 of 6 made for bad and doubtful debts. 13. As noted by the Tribunal, this issue is squarely covered in favour of the respondent/assessee by virtue of the judgment rendered by the Supreme Court in Vijaya Bank v. CIT, [2010] 323 ITR 166. 14. Thus, for the foregoing reasons, we are not inclined to entertain the above-captioned appeals. 15. As noted above, no substantial question of law arises qua any of the issues noted above. 16. The appeals are, accordingly, closed. 17. Consequently, the pending applications shall also stand closed. 18. Parties will act based on t…

The Principal Commissioner of Income Tax vs. Dhanalaxmi Bank Ltd

ITA/59/2020HC Kerala04 Aug 2023

Bench: HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR,HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P.

For Appellant: M/S.DHANALAXMI BANK LTDFor Respondent: THE PRINCIPAL COMMISSIONER OF INCOME TAX
Section 143(3)Section 14ASection 36Section 36(1)(vii)

…e order dated 18.12.2018 passed by the Principal Commissioner of Income Tax and found the assessee entitled to the deduction under Section 36(1)(vii) relying on the judgment of the Supreme Court in Vijaya Bank v. Commissioner of Income-Tax and Another [(2010) 323 ITR 166 (SC)]. 3. In the appeal before us, the revenue impugns the order of the Tribunal and raises the following substantial questions of law:- 1. Whether on the facts and in the circumstances of the :4: I.T. Appeal No.59 of 2020. case and considering the facts presented before and considered by the Assessing Officer vis-a-vis the Princip…

Addl CIT RG 3(1), Mumbai vs. Icici Bank Ltd (in Respect of M.S, Icici Ltd Merged With M.S, Icici Bank Ltd), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 8435/MUM/2010[2003-04]Status: DisposedITAT Mumbai21 Jul 2023AY 2003-04

Bench: Shri Vikas Awasthy& Shri Amarjit Singhआअसं.8435 /मुं/2010("न.व. 2003-04) The Dy.Commissioner Of Income-Tax ,Cir. 3(1), Room No.607, 6Th Floor, Aaykar Bhavan, M.K.Road, Mumbai – 400 020 ...... अपीलाथ"/Appellant बनाम Vs. Icici Bank Limited, Icici Bank Towers, Bandra-Kurla-Complex, Bandra(East), Mumbai 400 051. Pan: Aaaci-1195-H .....""तवाद"/Respondent

For Appellant: Ms. Aarti Visanji, AdvocateFor Respondent: Shri P.C. Chhotaray, Spl. Counsel
Section 10Section 10(15)Section 23Section 36Section 36(1)(vii)Section 80M

…f as irrecoverable in the books of account, the same is sufficient to claim it as bad. In support of this contention the ld.Counsel for the assessee placed reliance on the following decisions: (i) TRF Ltd. vs. CIT , 230 CTR 14 (SC) (ii) Vijaya Bank vs. CIT, 323 ITR 166 (SC) She further referred to the order of Tribunal in assessee's own case for the Assessment Year 2004-05 and 2005-06, wherein the Tribunal had restored the issue back to the file of Assessing Officer in light of decision in the case of 11 ITA NO.8435/MUM/2010(A.Y.2003-04) Vijaya Bank (supra). In the order giving effect, the Assessing Officer f…

Icici Bank Ltd, Mumbai vs. Addl CIT RG 3(1), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 8420/MUM/2010[2003-04]Status: DisposedITAT Mumbai21 Jul 2023AY 2003-04

Bench: Shri Vikas Awasthy& Shri Amarjit Singhआअसं.8435 /मुं/2010("न.व. 2003-04) The Dy.Commissioner Of Income-Tax ,Cir. 3(1), Room No.607, 6Th Floor, Aaykar Bhavan, M.K.Road, Mumbai – 400 020 ...... अपीलाथ"/Appellant बनाम Vs. Icici Bank Limited, Icici Bank Towers, Bandra-Kurla-Complex, Bandra(East), Mumbai 400 051. Pan: Aaaci-1195-H .....""तवाद"/Respondent

For Appellant: Ms. Aarti Visanji, AdvocateFor Respondent: Shri P.C. Chhotaray, Spl. Counsel
Section 10Section 10(15)Section 23Section 36Section 36(1)(vii)Section 80M

…f as irrecoverable in the books of account, the same is sufficient to claim it as bad. In support of this contention the ld.Counsel for the assessee placed reliance on the following decisions: (i) TRF Ltd. vs. CIT , 230 CTR 14 (SC) (ii) Vijaya Bank vs. CIT, 323 ITR 166 (SC) She further referred to the order of Tribunal in assessee's own case for the Assessment Year 2004-05 and 2005-06, wherein the Tribunal had restored the issue back to the file of Assessing Officer in light of decision in the case of 11 ITA NO.8435/MUM/2010(A.Y.2003-04) Vijaya Bank (supra). In the order giving effect, the Assessing Officer f…

DCIT, Circle- 21(1), New Delhi vs. Religare Finvest Ltd., New Delhi

In the result, -Appeal in ITA No

ITA 7553/DEL/2018[2015-16]Status: DisposedITAT Delhi13 Jul 2023AY 2015-16

Bench: Dr. B. R. R. Kumar & Shri Yogesh Kumar U.S.

Section 14A

…of the assessee in ITA No. 2559/Del/2016 vide order dated 10/12/2021 passed by the Co-ordinate Bench of this Tribunal in Assessee’s own case for the Assessment Year 2010-11, wherein the Tribunal has followed the decision of Vijaya Bank Vs. CIT(A) reported in 323 ITR 166 and held that since the assessee company duly reduced the bad debts from the figure of loss and advances as appearing in the balance sheet, the same could not be treated as merely creating provision and was in the nature of bad debts written off. 28 ITA Nos. 4796/Del/2017 & ors. M/s Religare Finvest Ltd. Vs. DCIT 24. We have heard both partie…

Religare Finvest Ltd., New Delhi vs. DCIT, Circle- 21(1), New Delhi

In the result, -Appeal in ITA No

ITA 6116/DEL/2018[2015-16]Status: DisposedITAT Delhi13 Jul 2023AY 2015-16

Bench: Dr. B. R. R. Kumar & Shri Yogesh Kumar U.S.

Section 14A

…of the assessee in ITA No. 2559/Del/2016 vide order dated 10/12/2021 passed by the Co-ordinate Bench of this Tribunal in Assessee’s own case for the Assessment Year 2010-11, wherein the Tribunal has followed the decision of Vijaya Bank Vs. CIT(A) reported in 323 ITR 166 and held that since the assessee company duly reduced the bad debts from the figure of loss and advances as appearing in the balance sheet, the same could not be treated as merely creating provision and was in the nature of bad debts written off. 28 ITA Nos. 4796/Del/2017 & ors. M/s Religare Finvest Ltd. Vs. DCIT 24. We have heard both partie…

Religare Finvest Ltd., New Delhi vs. DCIT, Circle- 21(1), New Delhi

In the result, -Appeal in ITA No

ITA 547/DEL/2018[2013-14]Status: DisposedITAT Delhi13 Jul 2023AY 2013-14

Bench: Dr. B. R. R. Kumar & Shri Yogesh Kumar U.S.

Section 14A

…of the assessee in ITA No. 2559/Del/2016 vide order dated 10/12/2021 passed by the Co-ordinate Bench of this Tribunal in Assessee’s own case for the Assessment Year 2010-11, wherein the Tribunal has followed the decision of Vijaya Bank Vs. CIT(A) reported in 323 ITR 166 and held that since the assessee company duly reduced the bad debts from the figure of loss and advances as appearing in the balance sheet, the same could not be treated as merely creating provision and was in the nature of bad debts written off. 28 ITA Nos. 4796/Del/2017 & ors. M/s Religare Finvest Ltd. Vs. DCIT 24. We have heard both partie…

ACIT (OSD), Circle- 21(1), New Delhi vs. Religare Finvest Ltd., New Delhi

In the result, -Appeal in ITA No

ITA 133/DEL/2018[2014-15]Status: DisposedITAT Delhi13 Jul 2023AY 2014-15

Bench: Dr. B. R. R. Kumar & Shri Yogesh Kumar U.S.

Section 14A

…of the assessee in ITA No. 2559/Del/2016 vide order dated 10/12/2021 passed by the Co-ordinate Bench of this Tribunal in Assessee’s own case for the Assessment Year 2010-11, wherein the Tribunal has followed the decision of Vijaya Bank Vs. CIT(A) reported in 323 ITR 166 and held that since the assessee company duly reduced the bad debts from the figure of loss and advances as appearing in the balance sheet, the same could not be treated as merely creating provision and was in the nature of bad debts written off. 28 ITA Nos. 4796/Del/2017 & ors. M/s Religare Finvest Ltd. Vs. DCIT 24. We have heard both partie…