AO held that the assessee had declared loss in original as well as in revised return and, therefore, deduction under S. 36(1)(viia)(c) is not allowable. Tribunal held that the assessee is entitled to deduction in respect of provision made for doubtful assets and loss assets in terms of proviso to S.36(1)(viia)(c) even though assessee did not have any positive profits to set it off from. High Court confirmed Tribunal’s order of the Tribunal. (AY. 2003 -04)
CIT v. Tamilnadu Industrial Investment Corpn. Ltd. (2019) 112 taxmann.com 386 (2020) / 421 ITR 525268 Taxman 396 (Mad.)( HC) Editorial : SLP of revenue is dismissed ; CIT v. Tamilnadu Industrial Investment Corpn. Ltd [2019] 416 ITR (St.) 77 /. (2020) 268 Taxman 395 (SC)
S. 36(1)(viia) : Bad debt-Provision for bad and doubtful debts- Schedule bank-Entitle to set off though dis not have any positive profit to set off.