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TMI Blog2018 (9) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... written off amounts, there could be no claim raised. FAA and the Tribunal to have correctly disallowed the claim under clause (vii) of Section 36(1) for reason of the provision made under clause (viia) of Section 36(1), relating to the business of rural branches being in excess of the claim for actual write off made for the previous year to the assessment year. Decided in favour of the revenue and against the assessee. - I.T. Appeal Nos.214 And 278 of 2010 - - - Dated:- 8-8-2018 - MR. K. VINOD CHANDRAN AND MR. ASHOK MENON, JJ. For The Appellant : Adv. Sri. Jose joseph, SC, For Income Tax For The Respondent : Sri. P. Balakrishnan (E), Adv. Sri. V. Sreekumar And Adv. Sri. Jose Joseph - Standing Counsel JUDGMENT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue on this question, the revenue cannot be permitted to file an appeal from the order of the Tribunal for the simple reason that the question of law agitated do not arise from the order of the Tribunal. The Tribunal was never called upon to decide on that particular question. Hence, I. T. Appeal No. 214/2010 stands rejected. I . T . Appeal No . 278/2010 The appeal of the assessee bank is with respect to the claim of written off bad debts in the previous year and the adjustments made by the assessing officer to the provision for bad and doubtful debts created under sub clause (viia) of Section 36(1) of the I. T. Act with reference to the rural branches. The assessee relies on the judgment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orporated by or under the laws of India or a non-scheduled bank, to the extent of an amount not exceeding 5% of the total income and an amount not exceeding 10% of the aggregate average advances made by the rural branches of such bank computed in the prescribed manner. The provision in the first limb of clause(viia) of Section 36(1) of the Act being an amount not exceeding 5% of the total income relates to the entire business of the bank, while the second limb is confined to the advances made by the rural branches of the bank. A harmonious construction would be that both these amounts can be claimed as provision for bad and doubtful debts. 5. We also have to notice that under clause (vii) of Section 36(1) of the Act, the deduction permit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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