“Credit balance” in provision for bad and doubtful debts as prescribed under Proviso to S. 36(1)(vii) means “Opening credit balance” of the same:

As per the Proviso to Section 36(1)(vii), in case of an assessee to which clause (viia) of Section 36(1) applies, amount of deduction relating to any such debt or part thereof shall be limited to the amount by which such debt or part thereof exceeds the credit balance in the provision for bad and doubtful debts account made under that clause. The credit balance for this purpose shall be the “Opening credit balance” i.e. the balance brought forward as on 1^st April of the relevant accounting year.

[UTI BANK LTD. - TAX APPEAL No.1077 to 1080 of 2010 - GHC]