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TMI Blog2013 (6) TMI 457X X X X Extracts X X X X X X X X Extracts X X X X ..... ded in the said section. This ground of appeal of assessee stands allowed. Provision for leave salary and provision against the standard asset - Held that:- As it is noticed that the assessee is asking for deduction in respect of provisions which are not allowable as an expenditure when computing the taxable income under the I. T. Act & perusing decision of Southern Technologies Ltd. [2010 (1) TMI 5 - SUPREME COURT OF INDIA] the disclosures norms of the Reserve Bank of India would not affect the computation of taxable income under the I. T. Act. Thus considering all as also on the ground that a provision is not a permissible deduction under the I. T. Act issue decided against assessee. - ITA No. 606/CTK/2012 - - - Dated:- 3-6-2013 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Leave Salary and the Standard Assets by the Commissioner of Income Tax (Appeals) in confirming the order of the Learned Assessing Officer are of misinterpretation of the Appellant's case as well as without giving a proper finding and as such order passed is arbitrary and bad in law." 4. It was the submission by the Ld. AR that there are three issues in the appeal. The first issue was against the action of the Ld. CIT(A) in denying the assessee the deduction allowable u/s. 36(1)(viia) of the Income-tax Act, 1961 (hereinafter referred to as the Act) in respect of the provisions for bad and doubtful debts. The second issue was against the action of the Ld. CIT(A) in denying the assessee the benefit of the deduction of the provision for lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a primary agricultural credit society or a primary co-operative agricultural and rural development bank" has been introduced in the provisions of section 36(1)(viia) w.e.f. 01.04.2007 by the Finance Act, 2007. A perusal of para 6.1.6 of the order of Ld. CIT(A) shows that the Ld. CIT(A) has considered the provisions of section 36(1)(viia) of the Act as was available at its introduction by the Finance Act, 1979. As the assessee is a co- operative bank and is doing the business of banking as has been recognized in the assessment order by the AO and as the assessment year involved is AY 2009-10 and as a co-operative bank such as the assessee is being introduced in the provisions of section 36(1)(viia) of the Act, we are of the view that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an expenditure when computing the taxable income under the I. T. Act. Further, a perusal of the decision of Hon'ble Supreme Court in the case of Southern Technologies Ltd., referred to supra, clearly shows that the disclosures norms of the Reserve Bank of India would not affect the computation of taxable income under the I. T. Act. Under these circumstances, respectfully following the principles as laid down by the Hon'ble Supreme Court in the case of Southern Technologies Ltd., referred to supra, as also on the ground that a provision is not a permissible deduction under the I. T. Act. The findings of the Ld. CIT(A) on this issue stand confirmed. These two issues in relation to the provision for leave salary and the provision against stand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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