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TMI Blog2014 (1) TMI 1737X X X X Extracts X X X X X X X X Extracts X X X X ..... ad already made provision though with a different nomenclature. We are satisfied that the assessee has made provision and claimed deduction in accordance with the provisions of section 36(1)(viia). The assessee is entitled to the benefit of same. The impugned order is set aside - Decided in favour of assessee - I.T.A. No. 948/Mds/2013 - - - Dated:- 21-1-2014 - Dr. O.K. NARAYANAN, VICE PRESIDENT SHRI VIKAS AWASTHY, JUDICIAL MEMBER Shri R. Viswanathan, FCA for the Appellant Shri T.N. Betgeri, JCIT for the Respondent. ORDER Vikas Awasthy, Judicial Member - The appeal has been filed by the assessee against the order of the Commissioner of Income Tax(Appeals)-IX, Chennai dated 28-01-2013 relevant to the Assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that although the amount of non-performing assets is much higher but the assessee has claimed deduction of ₹ 2,52,02,169/- which is 7.5% of the gross total income in accordance with the provisions of section 36(1)(viia). The ld.AR contended that the authorities below have erred in coming to the conclusion that the assessee has not created any provision for doubtful debts. The provision for doubtful debts and the provision for non-performing assets are one and the same. The provision was created and classified as per the directions/guidelines issued by NABARD and Reserve Bank of India. Disallowance cannot be made merely on the change in nomenclature. 4. On the other hand, Shri T.N. Betgeri, representing the department vehement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and one-half per cent of the total income (computed before making any deduction under this clause and Chapter VIA) and an amount not exceeding ten per cent of the aggregate average advances made by the rural branches of such bank computed in the prescribed manner : Provided that a scheduled bank or a non-scheduled bank referred to in this sub-clause shall, at its option, be allowed in any of the relevant assessment years, deduction in respect of any provision made by it for any assets classified by the Reserve Bank of India as doubtful assets or loss assets in accordance with the guidelines issued 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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