9911796707
TMI Blog2010 (12) TMI 1198X X X X Extracts X X X X X X X X Extracts X X X X ..... -operative society registered under the U.P. Cooperative Society Act. It is engaged in the business of banking. It has filed its return of income on 31.10.2007 declaring an income of ₹ 6,99,15,737/-. The assessee had made a provision of bad debts at ₹ 4,10,00,000/-. It claimed a deduction of ₹ 2,84,42,000/- as per section 36(viia) of the Income-tax Act, which is 10% of the average advance of the rural branches. The learned Assessing Officer disallowed this claim of the assessee on the ground that assessee ought to have actually written off this amount in the books. The learned first appellate authority has allowed the claim of the assessee on the ground that Assessing Officer has erred in interpreting section 36(viia) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued by it in this behalf, for an amount not exceeding five per cent of the amount of such assets shown' in the books of account of the bank on the last day of the previous year] [Emphasis supplied by me] A bare perusal of this clause reveals that it is nowhere provided in this clause that bad debts have to be actually written off by the assessee. This condition is available in section 36(vii). Therefore, we are of the view that learned CIT (A) has rightly deleted the addition. 5. In the next ground of appeal, grievance of revenue is that the learned CIT (A) has erred in directing the Assessing Officer to examine the claim of the assessee u/s 10(34) and if admissible, then grant the exemption. 6. The brief facts of the case are th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntions and gone through the record carefully. In our opinion, learned first appellate authority has not remanded any issue for adjudication to the Assessing Officer. The learned CIT (A) in principle agreed that exemption u/s 10(34) is available to the assessee on the dividend income. He felt a little handicap with regard to verification of a fact, whether the company who had given dividend has paid the tax on distributed profits or not. For this limited purpose, he directed the Assessing Officer to verify this claim. In our opinion, learned CIT (A) has not exceeded to his jurisdiction. We do not find any error in the order of the learned first appellate authority. 11. In the result, the appeal of the revenue is dismissed. Order pronou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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