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Commissioner Of Income Tax, New Delhi vs M/S Eicher Goodearth Ltd. on 15 February, 2022

"3.3 I have considered the submissions made by the appellant and observations of the AO. It is very clear that the assessee does not fall within the provisions of section 36(1)(viia) which applies to the scheduled bank or a non-scheduled bank. As claimed by the assessee it is not covered by the definition of non-scheduled bank as defined in clause (i) of Explanation below clause (viia) of Section 36(1). Hence, the claim is not allowable under these provisions. The amount is also not allowable u/s 37(1) because the provision for NPA is not an ascertained liability at all for the purpose of section 37(1). The decision of Hon'ble Delhi High Court in the case 7 I.T.A. No.618, 1785& 2014/Ahd/2007 of CIT v. Eicher Ltd (supra) was in the context of book profit u/s 115J / 115JA and therefore, it cannot be said that the NPA can be treated as ascertained liability within the meaning of section 37(1). If the NPA could be considered as allowable liability u/s 37(1) then there would have been no need for the provisions of section
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