1) Provision under the income Tax Act read as (only relevant provision produced below): -
36. (1) The deductions provided for in the following clauses shall be allowed in respect of the matters dealt with therein, in computing the income referred to in section 28—
[(viia) 45 [46 in respect of any provision for bad and doubtful debts made by—
(b) a bank, being a bank incorporated by or under the laws of a country outside India, an amount not exceeding five per cent of the total income (computed before making any deduction under this clause and Chapter VIA);]
2) Conclusion/Interpretation: -
The highlighed words above "deductions provided for" indicates that deductions which are provided (allowed) by the legislature to the assessee in the clauses produced ahead in sec 36 (which are part of sec 36 itself) (pls note that sub clauses are also part of there parental clauses) which he can claim.
However, legislature intentionally used the words "in respect of any provision" .............made later in clause (viia), which works as a pre condition for any expense item to become eligible to be claimed as deduction under section 36 (its clauses & sub clause are integral part of sec 36 & hence pls read these with sec 36- from very first line).
- Thus, MAKING of PROVISION is MANDATORY.