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2014 (1) TMI 945 - ITAT CHENNAIRevision u/s 263 of the Act - Entitlement to claim deduction u/s 36(1)(viia)(a) of the Act – Held that:- The benefit of Section 36(1)(viia)(a) is available only to Scheduled and Non-Scheduled Banks, co-operative banks are not entitled for the same -the assessee is carrying on banking activities - . Thus, the assessee falls within the definition of Section 5(c) of Banking Regulation Act - The assessee is a Non-Scheduled Bank and is thus entitled to claim benefit of provisions of Section 36(1)(viia)(a) of the Act – the decision Asstt. CIT v. Jaipur Central Co-operative Bank Ltd.[2014 (1) TMI 833 - ITAT JAIPUR] followed. Creation of provision for bad debts - Whether the assessee has created any reserve/provision for bad and doubtful debts – Held that:- For claiming benefit under the provisions of Section 36(1)(viia)(a) the conditions to be satisfied is that the provision for bad and doubtful debts should have been made by the bank eligible to claim such deduction - the assessee has created provision for bad and doubtful debts may be under different nomenclature - This will not dis-entitle the assessee for claiming deduction under the provisions of Section 36(1)(viia)(a). The purpose for creation of reserve for NPA is same i.e., creating provision towards bad and doubtful debts – the order of the CIT(A) set aside – Decide in favour of Assessee.
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