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TMI Blog2016 (11) TMI 1238X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the Revenue so that the same debtors are not claimed as bad debts again and again because the debtors towards which such bad debts are claimed are not written off in the books of account. Since these aspects have not been considered by the learned Assessing Officer, we hereby remit back the matter to the file of the learned Assessing Officer for fresh consideration, accordingly the issue with respect to computation of deduction under section 36(1)(viia) of the Act is also remitted back for fresh consideration. Further, since the assessee has raised an additional issue in regard to the claim of deduction under section 80P of the Act for the first time, the issue is also remitted back to the file of the learned Assessing Officer for de no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Brief facts of the case are that the assessee is a co-operative society carrying on banking business filed its return of income on September 30, 2010, for the assessment year 2010-11 admitting the income of ₹ 5,89,61,130. The case was selected for scrutiny and notice under section 143(2) was issued to the assessee on August 30, 2011. Thereafter, the assessment was completed by the learned Assessing Officer on March 7, 2013, under section 143(3) of the Act wherein he has made certain additions/disallowances amongst which one of the addition was provision created towards non-performing asset amounting to ₹ 31,15,08,410. 5. During the course of assessment proceedings, it was observed by the learned Assessing Officer that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Income-tax (Appeals) upheld the order of the learned Assessing Officer by agreeing with the observations made by the learned Assessing Officer. 7. We have heard the rival submissions and carefully perused the materials available on record. Since the assessee is a co-operative society carrying on banking business, it is eligible for deduction under section 36(1)(viia) of the Act towards certain provision made for bad and doubtful debts in accordance with the provisions of the Act. When such provision is allowed as deduction, the actual bad debt of the assessee has to be charged to that account and only if there is an excess further deduction will be allowed under section 36(1)(vii) of the Act. The provisions of section 36 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aspects have not been considered by the learned Assessing Officer, we hereby remit back the matter to the file of the learned Assessing Officer for fresh consideration, accordingly the issue with respect to computation of deduction under section 36(1)(viia) of the Act is also remitted back for fresh consideration. Further, since the assessee has raised an additional issue in regard to the claim of deduction under section 80P of the Act for the first time, the issue is also remitted back to the file of the learned Assessing Officer for de novo consideration. 9. In the result, the appeal of the assessee is allowed for statistical purposes as indicated hereinabove. Order pronounced in the open court on the 7th September, 2016. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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