“Section 35(1)(vii)”

A provision for doubtful debts cannot be added back while computing book profits under Section 115JB of the Income-tax Act for Minimum Alternate Tax (MAT) purposes.

Pure reimbursement of expenditure does not constitute income in the nature of royalty or fees for technical services, therefore eliminating the obligation to deduct tax at source.

Provision for bad and doubtful debts, if it amounts to an actual write-off by reducing the sundry debtors balance from the asset side of the Balance Sheet, cannot be added back when computing book profits under Section 115JB read with Explanation (i) of the Income Tax Act.

For banks, the computation of bad debt allowance under sections 36(1)(vii) or 36(1)(viia) must be restricted to only incremental advances, rejecting broader interpretations by tax authorities.

A company is not required to prove that a debt has become bad to claim a deduction; writing off the debt as irrecoverable in the company's accounts is sufficient, especially after the amendment of Section 36(1)(vii) from April 1, 1989.

A provision for doubtful debts made in the profit and loss account and reduced from loans and advances in the balance sheet may qualify for deduction as bad debts under section 36(1)(vii) of the Income-tax Act.

Expenditure on scientific research for weighted deduction must satisfy the conditions in section 35(2AB) and also the provisions of section 35(3)(b) of the Income Tax Act.

The Assessing Officer (AO) cannot override the decision of the prescribed authority (DSIR) regarding the approval of expenditure for weighted deduction under section 35(2AB). The AO must allow the assessee an opportunity to be heard before quantifying any expenditure.