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TMI Blog2014 (8) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... t relating to advances made by the urban branches written off in the books and also the difference between the amount written off in the books relating to advances made by the rural branches during the previous year relevant to the assessment year and the credit balance in the provisions for bad and doubtful debts account relating to advances made by the rural branches made under clause (viia) - while allowing the claim for bad debts written off in respect of advances made by rural branches, the CIT(A) as well as the Tribunal, was of the opinion that the assessee has not claimed any debts written off in respect of rural branch in the earlier year – there was no error in the order of the Tribunal in holding that the claim of bad debts in rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he very same assessee, for the earlier assessment years, a Division Bench of this Court in Commissioner of Income Tax v. City Union Bank Ltd., [2007] 291 ITR 144 (Mad.) has answered both the substantial questions of law raised in this appeal in favour of the assessee and against the Revenue. The relevant portion of the said order reads as under: 4.1. With regard to the first substantial question of law raised in T.C.(A) No.22 of 2004 and the first substantial question of law raised in T.C.(A) No.466 of 2004, the Division Bench of this Court by judgment dated 23.1.2007 made in T.C.(A) Nos.15 and 24 of 2003 (Commissioner of Income Tax, Madurai v. Tamilnadu Mercantile Bank Ltd., Tuticorin), after referring to the decisions in Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, were inserted simultaneously with effect from April 1, 1985, by the Finance Act, 1985. The scope of the proviso to clause (vii) of section 36(1) has to be ascertained from a cumulative reading of the provisions of clauses (vii), (viia) of section 36(1) and clause (v) of section 36(2). The intention of the Legislature in enacting the proviso to clause (vii) of section 36(1) and clause (v) of section 36(2) simultaneously is only to see that a double benefit in respect of the same bad debt is not given to a scheduled bank. A scheduled bank may have both urban and rural branches and advances given from both branches. Having regard to the hazards involved in realising the advances made by rural branches particularly to agriculturists, certain ..... X X X X Extracts X X X X X X X X Extracts X X X X
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