9911796707
TMI Blog2012 (10) TMI 1176X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has filed the present appeal against the order dt.28.3.2012 of the Commissioner of Income-tax (Appeals) for the Assessment Year 2008-09 raising the following grounds. "1. The learned CIT(Appeals) is unlawful in disallowing provision of ₹ 2,26,255 for standard assets as per Reserve Bank of India mandatory guidelines applicable to the assessee which is carrying Banking Business and has completely ignored the submissions of the Assessee made before him. Hence the addition confirmed by the CIT(Appeals) need be deleted. 2. The learned CIT(Appeals) has not passed any order on the submissions of the Assessee to allow the deduction of the income in respect of which the TDS has been deducted in A.Y. 2008-09 but deposited during A.Y. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nticipated losses and contingencies and relying on the decision of Hon'ble Apex Court in the case of Indian Molasses & Co. v. CIT (1959) upheld the disallowance of ₹2,26,255 and hence, the assessee is in appeal before the Tribunal. 5. We have heard both the parties and perused the impugned orders of the authorities below and also considered the material placed on record. The learned AR of the assessee contended that the provision for loss on standard assets is nothing but a provision towards bad & doubtful debts as is the case of substandard and loss assets. In the case, of the Standard Assets, provision allowed to be created as a percentage of the outstanding Loans & Advances is much less compared to that for the other types of Loan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of such assets to maintain and retain all standard assets, as per Master Circular on Income Recognition Asset Classification, Provisioning and other related matters issued by the Bank of India. He further mentioned that u/s 35A of the Banking Regulation Act, 1949, the Reserve Bank of India has been empowered to issue directions to all the banks as to regulate the banking business in the public interest or in the interest of banking policy. After discussing what has been submitted by the assessee before him, the Id. CIT(A) observed that the assessee had no option but to claim the same and the claim, even if notional, is exclusively laid out for the purpose of smooth running of banking business and there is no reason not to allow the same to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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