“Section 36(1)(viia)”

Section References (mined)Section 36Section 36(1)(viia)445 judgments

The decision most relied on for Section 36(1)(viia) is Maxopp Investment Ltd. v. CIT (347 ITR 272), cited in 516 judgments on BharatTax.

Leading authorities on Section 36(1)(viia)

Maxopp Investment Ltd. v. CIT

347 ITR 272 · 2012 · High Court

516

citing judgments

Disallowance under Section 14A cannot exceed the exempt income earned. The Assessing Officer must record satisfaction regarding the assessee's accounts before making any disallowance.

South Indian Bank Ltd. v. CIT

438 ITR 1 · 2021 · Supreme Court

508

citing judgments

The mixed fund theory is affirmed, holding that no disallowance of interest expenditure under Section 14A can be made if the assessee possesses sufficient non-interest bearing funds, such as capital and reserves, to cover investments made in tax-free securities.

Vijaya Bank v. CIT

323 ITR 166 · 2010 · Supreme Court

392

citing judgments

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.

Southern Technologies Ltd. v. JCIT

320 ITR 577 · 2010 · Supreme Court

353

citing judgments

The case concerns the allowability of deductions for provisions made under Section 36 of the Income Tax Act, 1961, especially those related to bad and doubtful debts. It distinguishes such deductions from the recognition of interest income on non-performing assets (NPAs).

Calcutta Co. Ltd. v. CIT

37 ITR 1 · 1959 · Supreme Court

341

citing judgments

When following the mercantile system of accounting, provisions for liabilities made on a scientific and rational basis are allowable as deductions, even if their actual quantification and discharge are deferred to a future date.

Catholic Syrian Bank Ltd. v. CIT

343 ITR 270 · 2012 · Supreme Court

326

citing judgments

For a bad debt deduction under Section 36(1)(vii), the debt must be actually written off as irrecoverable in the assessee's accounts, distinct from merely making a provision for bad and doubtful debts. The assessee bears the onus to satisfy the conditions under both Section 36(1)(vii) and Section 36(2) of the Income-tax Act.

United Commercial Bank v. CIT

240 ITR 355 · 1999 · Supreme Court

314

citing judgments

Liabilities accrued on a notional basis are allowable as deductions under the mercantile system of accounting even if their exact quantification or discharge is deferred to a future date or if the demand itself is disputed.

M.M.Aqua Technologies Limited v. CIT

436 ITR 582 · 2021 · Supreme Court

308

citing judgments

Amendments to tax law that impose new obligations or change existing legal positions apply prospectively, even if stated to be "for the removal of doubts." The judgment also clarifies that deductions under Section 43B are allowed only on actual payment, overriding the mercantile system of accounting.

Judgments citing Section 36(1)(viia)

The Kangra Central Cooperative Bank Limited, Dharamshala vs. Deputy Commissioner of Income Tax, Palampur

In the result, both the appeals of the assessee are allowed

ITA 804/CHANDI/2023[2012-13]Status: DisposedITAT Chandigarh28 Jan 2025AY 2012-13

Bench: SHRI. RAJPAL YADAV (Vice President), SHRI. VIKRAM SINGH YADAV (Accountant Member)

For Appellant: Shri Ashwani Kumar, C.AFor Respondent: Dr. Ranjit Kaur, Addl. CIT, Sr. DR

Section 143(3)Section 250Section 271(1)(c)Section 274Section 36(1)(viia)

Performing Assets and Non Performing Assets and as far as the provisions on Non Performing Assets, the assessee has claimed the deduction under section 36(1)(viia) of the Act and as far as the provisions for Performing Assets is concerned, the same have been set off against the interest ... accordingly submitted it is fairly incorrect on part of the AO to held that the assessee has made any such claim under section 36(1)(viia) of the Act and reference was drawn to para 7.1 of the impugned assessment order wherein the assessee bank was asked to explain

Income Tax Officer, Ward-1, Nanded vs. Latur District Central Co Op Bank Ltd, Latur

In the result, the appeal of the Revenue is dismissed

ITA 1222/PUN/2024[2018-19]Status: DisposedITAT Pune28 Jan 2025AY 2018-19

For Appellant: Department byFor Respondent: Date of hearing

Section 143(2)Section 143(3)Section 36(1)(viia)

written submissions of the appellant. The man issue in depute in the present appeal is whether the appellant is entitled for deduction under section 36(1)(viia) of The Income Tax Act respect of the provision for bad and doubtful debts for an amount ... Reserve Bank of India and is into the business of banking Accordingly, the appellant is entitled to claim deduction under section 36(1)(viia) a of the Income Tax Act, 1961 as it is one of the specified entities under the provision. It is further noted from the audited financials