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M/S. Southern Technologies Ltd vs Joint Commnr. Of Income Tax, Coimbatore on 11 January, 2010

The observation of the Respected Tribunal was that if the contention of the assessee was to be accepted, then it would amount to insertion of "NBFC" in section 43-D of the I.T. Act. As against that, as far as the assessee is concerned, it is an accepted fact that the assessee is a cooperative bank and not a non-banking financial company and this noteworthy distinction has already been appreciated by us in one of the paragraphs above. "There is one more decision of the Hon'ble Apex Court which is yet to be mentioned while discussing the arguments raised from the side of the Revenue. A decision in the case of Southern Technologies Ltd. v. Jt. CIT 320 ITR 577 (SC) has been cited but the fundamental difference is that the issue before the Hon'ble Court was in respect of provision for NPA and debited to P&L Account by a NBFC. The said provision was undisputedly made by the said NBFC as per the prudential norms made by the Reserve Bank. Therefore we want to make it clear that the question for consideration before the Hon'ble Court was that if a provision for doubtful debt is made then what will be the legal position of the applicability of Explanation to section 36(1)(vii) of the IT. Act. For the sake of ready reference, relevant paragraph from the held portion is reproduced below: "The income-tax is a tax on "real income", i.e., the profits arrived at on commercial principles subject to the provisions of the Act.
Supreme Court of India Cites 42 - Cited by 175 - S H Kapadia - Full Document

C.I.T vs M/S Vasisth Chay Vyapar Ltd. on 13 December, 2017

Hon'ble High Court of Delhi in the case of CIT v. Vasisth Chay Vyapar Ltd. [2011] 330 ITR 440/196 Taxman 169/[2010] 8 taxman.com 145 in which the Hon'ble Delhi High Court has considered the decision in the case of Southern Technologies Ltd. v. Jt. CIT [2010] 320 ITR 577/187 Taxman 346 (SC). The Tribunal finally held that the interest income rentable to NPA advances did not accrue to the assesses.
Supreme Court - Daily Orders Cites 0 - Cited by 90 - Full Document
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