Case Law Analysis
|Income Tax Appellate Tribunal
Section 36(1)(vii) & (viia) IT Act | Bad Debt Deduction Allowed Without Credit Balance Restriction : ITAT Mumbai
ITAT Mumbai rules that banks can claim bad debt deductions under Section 36(1)(vii) of the Income Tax Act without requiring a credit balance in the provision account under Section 36(1)(viia). The decision clarifies that double deduction is impermissible only if a provision credit balance exists, offering relief to financial institutions on tax treatment of written-off debts.