Held that the bad debts written off relating to non-rural advances was not required to be adjusted against provision for bad and doubtful debts allowed under section 36(1)(viia) of the Act and thus, the Assessing Officer was to recompute the deduction in respect of write off of non-rural debts without any adjustment to credit balance in the provision for bad and doubtful debts account in respect of rural advances. As regards excess provision the matter is remanded for verification. (AY. 2015-16 to 2017-18)
City Union Bank Ltd. v. Dy. CIT (2024)112 ITR 337 /229 TTJ 139 (Chennai)(Trib)
S. 36(1)(vii) :Bad debt-Provision for bad debts-Bad debts written Off-Bad debts written off relating to non-rural advances is not required to be adjusted against provision for bad and doubtful debts allowed under Section 36(1)(viia)-Excess provision matter remanded. [S.36(1)viia)]