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TMI Blog2012 (9) TMI 774X X X X Extracts X X X X X X X X Extracts X X X X ..... debts in excess of provision for doubtful debts provided in P&L – Held that:- As the provision for bad and doubtful debts equal to the amount mentioned in the section is a must for claiming such deduction. An amount of ₹ 36 lakhs is debited to the P&L account under the head "Provision for bad and doubtful debts" and however, the assessee had claimed deduction of ₹ 42,52,319- while computing the taxable income. Therefore appeal decides in favour of revenue - I.T.A No.1122/Bang/2010 - - - Dated:- 11-5-2012 - N. Barathvaja Sankar And George George K . JJ. Appellant by : Sheetal Borkar, Advocate Respondent by : B. Saravanan, JCIT ORDER Per N. Barathvaja Sankar, Vice President : This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in full. 04. The brief facts pertaining to this issue are that while framing the assessment u/s.143(3) of the IT Act, for the assessment year 2007-08, the Assessing Officer noticed that the assessee has claimed a sum of ₹ 26,40,237/- under amortization of premium on investments and the assessee had no explanation for the claim. Hence, he disallowed the same. While disallowing the same, the Assessing Officer followed the decision of the Madras High Court in the case of TN Power Finance and Infrastructure Development Corporation Ltd., v. JCIT (2006) 280 ITR 491. Aggrieved, the assessee moved the matter in appeal before the first appellate authority. 05. The learned Commissioner of Income-tax (Appeals) after considering the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it in its P L account a sum of ₹ 29,02 lakhs of amortization of premium. 07. Per contra, the learned DR was unable to controvert to the submissions of the learned counsel for the assessee. 08. We have carefully considered the rival submissions and perused the relevant facts and materials on record. We have also considered the findings of the various benches of the Tribunal, as under : (i) Catholic Syrian Bank Ltd v. ACIT (2010) 38 SOT 553 (Coch) : An identical issue to that of the subject matter under consideration had arisen before the Cochin Bench. After analyzing the issue in depth, the bench has observed that with regard to amortization of premium on purchase of Government securities, it was clarified that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s discussed supra, taking into account the totality of the facts and materials, we are of the considered view that the assessee is entitled to claim this deduction and hence we allow the grounds of the assessee relating to this issue. 09. Now turning to the second issue relating to disallowance of the claim of bad debt, the relevant ground reads as under : The learned Commissioner of Income-tax (Appeals) ought to have appreciated that the provision for Bad and Doubtful Debts was allowable and ought not to have made any disallowance much less the amount of ₹ 6,52,319/-. 10. The brief facts of this issue are that the Assessing Officer noticed that the assessee claimed excess amount of ₹ 6,52,319/ (difference of amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ground extracted elsewhere in this order. 12. The learned counsel for the assessee however, conceded that this issue is against the assessee. The learned DR supported the orders of the authorities below. 13. After considering the facts and materials in the light of the submissions made before us, we do not find any infirmity in the order of the Commissioner of Income-tax (Appeals) who has elaborately discussed and followed the decision of the Punjab Haryana High Court in dismissing the claim of the assessee. Thus, this ground of appeal of the assessee is dismissed. 14. The remaining issue relates to the interest u/s.234B and 234C of the Act, which is consequential in nature and we direct the Assessing Officer to give con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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