9911796707
TMI Blog2017 (5) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... that the order of the Assessing Officer whether it is erroneous or prejudicial to the interests of the Revenue has not been determined in this case in the very absence of the assessment order. Furthermore the issue with regard to the allowability of the provision for standard assets is covered by the decision of co-ordinate Bench of the Income-tax Appellate Tribunal, Jodhpur in the case of Nagaur Urban Co-operative Bank Ltd. v. Asst. CIT [2013 (11) TMI 1696 - ITAT JODHPUR]] and is in favour of the assessee wherein held The terminology "Reserve for NPA" has been used by the assessee in accordance with the RBI directions. As is evident from the assessment order the assessee has indeed created "Reserve for NPA". For claiming the benefit un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l to the interests of the Revenue and directing the Assessing Officer to disallow the provision for standard assets amounting to ₹ 5,44,000 holding that such provision is not allowable as provision for bad debt allowable under section 36(1)(viia). 2. That on the facts and in the circumstances of the case, the learned Commissioner of Income-tax-1, Jodhpur erred in denying to follow the judgment of the jurisdictional Income-tax Appellate Tribunal Jodhpur Bench in the case of Nagaur Urban Co-operative Bank Ltd. v. Asst. CIT (I. T. A. No. 240/Jodhpur/2013 dated November 29, 2013) which is on the identical issue and the learned Commissioner of Income-tax being the lower authority is bound to follow the judgment of the hon'ble Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on October 12, 2010 declaring an income of Rs. nil. The case was selected for scrutiny through CASS and notice under section 143(2) of the Act was issued on September 27, 2011. Later on a query letter calling for information under section 142(1) of the Act was issued to the assessee on August 29, 2012. The books of account of the assessee are audited as required under section 44AB of the Act and was produced during the course of assessment proceedings. The books of account were examined on test check basis and as against the returned income of nil, the assessment completed under section 143(3) of the Act and the assessed income being ₹ 63,44,299. 4. We have perused the case records, the rival contentions have also been heard and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere returned to the Income-tax Officer, Ward-1, Pali on September 25, 2014. From this file regarding the audit observation, it is apparent that the case records were examined by the Commissioner of Income-tax-1, Jodhpur. 6. That, on a perusal of the aforesaid letter, on record it is absolutely clear that the very basis of order under section 263 of the Act is the assessment order which was not available in the file. That therefore the order under section 263 of the Act passed by the learned Commissioner of Income-tax cannot sustain in law and at the very outset the said order becomes invalid because of the fact that the order of the Assessing Officer whether it is erroneous or prejudicial to the interests of the Revenue has not been de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant portion of the order of the Tribunal (supra) is reproduced as under : '8. Now the second question which arises for determination before us is whether the assessee has created any reserve/provision for bad and doubtful debts ? The authorised representative has contended that the assessee has created provisions for bad and doubtful debts under the nomen clature Reserve for NPA . The terminology Reserve for NPA has been used by the assessee in accordance with the RBI directions. As is evident from the assessment order the assessee has indeed created Reserve for NPA . For claiming the benefit under the provisions of section 36(1)(viia)(a) the conditions to be satisfied is ; that the provision for bad and doubtful debts sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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