No Provisions will be allowed under the Income Tax Act 1961.
W.R.T your second issue about a particular Section which say thats " Provisions are not Allowed".........
Rather than understanding that way, i believe we should see it as follows
" Since there is no Section which specifically allows Provision on Inventory (whether made for obsolete inventories or real/actual expenditure), therefore there cannot be any claim for Provision "
Unlike " Provision for Bad & doubtfull debts " which is allowed for Banks and Financial Institutions which is specifically given under Section 36(1)(viia).
Hope i have clarified your Doubt
Thank you,
Regards CA. Lohith. J B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons