The Tribunal quashed the direction which related to disallowance of provision created for standard assets as issue was debatable. However, the Tribunal upheld the revision regarding disallowance related to short provision for waiver of loans as it was held that the reimbursement of debts waived receivable from the government could not be held to be doubtful debtor.(AY. 2009-10 to 2012-13,2014-15,2017-18)
Virudhunagar District Central Co-operative Bank Ltd. v.PCIT (2023) 201 ITD 573 (Chennai Trib)]
S. 263 : Commissioner-Revision of orders prejudicial to revenue-
Provision for doubtful debts-Revision bad in law where the A.O. has taken view possible in respect of standard asset where there was inherent risk of going these debts bad-Revision is upheld in cases where amount was receivable from Government in respect of debts waived off. [S. 36(1)(vii), 36(1)(via)(2)]