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TMI Blog2019 (1) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... non-rural branches will be confined to the excess allowed from the provision made, and deduction allowed, for non-rural branches. We make it clear that in making the computation, there can be no consideration of the provision for bad debts for rural branches as granted under clause (viia) of Section 36(1). - decided in favour of assessee. Depreciation or loss on revaluation of securities - whether can be permitted on the basis of the market value or cost price, whichever is less, as stipulated by the Reserve Bank of India? - Held that:- The issue of revaluation of securities is covered in C.I.T. v. Nedungadi Bank Ltd. [2002 (11) TMI 29 - KERALA HIGH COURT] and C.I.T. v. Lord Krishna Bank Ltd [2010 (10) TMI 860 - KERALA HIGH COURT]. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat:- A permissible allowance as business expenditure under Section 37. Non application of Section 14A for the assessment year 2004-05 - Held that:- The Hon'ble Supreme Court in C.I.T. v. ESSAR Teleholdings Pvt.Ltd. [2018 (2) TMI 115 - SUPREME COURT OF INDIA] had found that the provision can be made applicable only from the assessment year 2007-08. Hence, for the assessment year 2004-05, Section 14A has no application. Hence, the said question is answered in favour of the assessee Current investments written off - whether can be claimed as loss for the assessment year in which it has been written off ? - Held that:- On current investments written off, this Court in C.I.T. v. Lord Krishna Bank Ltd. (2017 (10) TMI 598 - KERALA HIGH COUR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee gets the dividend in a later year, it could be treated as income in that year. The write off on the ground of dishonour of cheque cannot at all be disputed and is evident from the books of accounts. We, hence, answer this question in favour of the assessee - ITA 352/2009, ITA. 597/2009, ITA. 755/2009, ITA. 769/2009, ITA. 815/2009, ITA. 817/2009, ITA. 872/2009, ITA. 1287/2009 And ITA. 38/2011 - - - Dated:- 18-12-2018 - MR K. VINOD CHANDRAN AND MR ASHOK MENON, JJ. For The Appellant : ADV. SRI. P. K. R. MENON, SENIOR COUNSEL, GOI(TAXES) SRI. JOSE JOSEPH, SC, FOR INCOME TAX For The RESPONDENT : ADVS. SRI. JOSEPH KODIANTHARA (SR. ) AND SRI. TERRY V. JAMES JUDGMENT Vinod Chandran, J. Common questions aris ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A could be sustained in view of the specific proviso prohibiting enhancement before the assessment year 2001-02 ? IX) Whether the Tribunal was correct in having permitted the allowance of write off of an amount, which the assessee was entitled to, as dividend from another company, which was returned as income on receipt of a cheque, which subsequently got dishonoured ? 2. On the first question the issue has to be answered in favour of the assesee and against the Revenue, going by the decision of the Hon'ble Supreme Court in [2012] 343 ITR 270 (SC), Catholic Syrian Bank Ltd. v. C.I.T. The Assessing Officer shall verify the computation, looking into whether there is any allowance granted for provision of bad debts in nonrural br ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for identification of rural branches, when the identification is on the basis of the population alone in wards of the local authorities. We hence answer the third question in favour of the Revenue and against the assessee in I.T.A.Nos.597, 755, 769, 815, 817, 872 and 1287 of 2009. The dis-allowance made by the Assessing Officer to that extent has to be restored. 5. The learned Senior Counsel appearing for the assessee has an alternative submission insofar as the assessee having written off the said debts and there being no requirement to find out whether those are rural branches or not. The contention is that the assessee could have claimed it under clause (viia) of Section 36(1). A similar contention was raised in assessee's own ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e provision can be made applicable only from the assessment year 2007-08. Hence, for the assessment year 2004-05, Section 14A has no application. Hence, the said question is answered in favour of the assessee and against the Revenue in I.T.A.No.815/2009. 9. On current investments written off, this Court in I.T.A.No.411/2009 ( C.I.T. v. Lord Krishna Bank Ltd. ) followed the decision in Nedungadi Bank Ltd. and [1999] 240 ITR 355 (SC), United Commercial Bank, Calcutta v. C.I.T., WB-II, Calcutta to rule in favour of the assessee. The question hence is answered in favour of the assessee and against the Revenue in I.T.A.No.815/2009. 10. The enhancement made by the C.I.T. (Appeals) is the issue raised as question No.VIII. The issue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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