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TMI Blog2018 (2) TMI 1468X X X X Extracts X X X X X X X X Extracts X X X X ..... ve that the provision for bad and doubtful debts written back was allowed as expenditure reducing profit in the profits and loss account for the previous year. It is the case of the assessee that as per RBI guidelines for provisioning of bad and doubtful debts, in terms of Section 36(1)(viia), provision was made. The same being excess, was written back in the books of accounts. Recovery if any from such written of accounts is being offered to tax on yearly basis under the head “Miscellaneous income” by the bank. The appellate authority as well as the Tribunal placing reliance on the decision of the ITAT, Delhi Bench in the case of Bank of Tokyo Vs. JCIT (2009 (7) TMI 178 - ITAT DELHI-B) and considering the fact that the Revenue has not esta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Commissioner of Income Tax(Appeals) (for short, 'CIT(A)') and the same came to be allowed. Being aggrieved by the same, the Revenue preferred an appeal before the Tribunal. The Tribunal dismissed the appeal. Hence, this appeal by the Revenue. 3. Learned counsel Sri.Y.V. Raviraj, appearing for the appellant/Revenue would contend that the Tribunal has grossly erred in not appreciating the case of the assessee-respondent, provision of bad debts has been allowed as expenditure, while computing the gross total income, in the earlier previous years and therefore, the excess provision written during the subsequent assessment year amounts to income within the meaning of Section 41(1) of the Act. 4. Learned counsel Sri. H.R. Kambiyavar, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act contemplates that a scheduled bank not being a bank incorporated by or under the laws of a country outside India or a non-scheduled bank or a co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank, an amount not exceeding seven 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, any provision, for bad and doubtful debts can be made during the relevant assessment year. Section 41 of the Act provides for profits chargeable to tax. Section 41(1) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd doubtful debts, in terms of Section 36(1)(viia) of the Act, provision was made. The same being excess, was written back in the books of accounts. Recovery if any from such written of accounts is being offered to tax on yearly basis under the head "Miscellaneous income" by the bank. 9. The appellate authority as well as the Tribunal placing reliance on the decision of the ITAT, Delhi Bench in the case of Bank of Tokyo Vs. JCIT (125 TTJ (Del 'B' - Trib) 655 and considering the fact that the Revenue has not established that the excess provision written back in the profit and loss account was allowed as deduction in the previous years has given a finding against the Revenue. We do not find any infirmity or irregularity in such finding. Acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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