Tribunal held that assessee Co-operative bank is eligible for deduction under S. 36(1)(viia) to extent of 7.5 per cent of total business income. however since doubtful debts and loss assets of assessee bank were non-performing assets for a period of more than three years, same were essentially in nature of sticky loans and were to be considered for allowance under section 37(1) of the Act .( AY.2009 -10)
Malad Sahakari Bank Ltd. v. DCIT (2019) 176 ITD 438/ 182 DTR 350 (Mum.) (Trib.)
S. 36(1)(viia) : Bad debt-Provision for bad and doubtful debts- Schedule bank-Co-operative bank- Eligible for deduction of provision for doubtful debt and loss assets to extent of 7.5 per cent of business income (computed before making any deduction under this clause and Chapter VIA). [S. 37(1)]