2017 (9) TMI 1839

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..... ppeal is allowed.
SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM For the Appellant : Shri Ajay Somani (C.A.) For the Respondent : Shri S.L. Chandel (Addl. CIT) ORDER PER SHRI KUL BHARAT, JM. This appeal by the Assessee is directed against the order of Ld. CIT(A), Ajmer dated 15.10.2015 pertaining to A.Y. 2013-13. The Assessee has raised the solitary ground of appeal :- "1. That the Ld. CIT(A), Ajmer has erred in law and the facts in confirming the additions by way of disallowance of ₹ 1,93,30,000/- of Provision against Bank's Debtors as the same has been made as per RBI guidelines." 2. Briefly, stated the facts are that the case of the assessee was picked up for scrutiny assessment and the assessment u/s 143(3) of the Incom .....

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..... n this issue. The deduction u/s 36(1)(vii) is allowable, subject to certain conditions only in respect of any 'provision for bad and doubtful debts' made by a Scheduled Bank. The provision made for 'standard assets' is not a 'provision for bad and doubtful debts', therefore, I am of the considered view that deduction in respect of the provision made by the appellant for standard assets is not an admissible deduction u/s 36(1)(vii). Therefore, the disallowance made by the AO is hereby confirmed. 3.4 Under the identical facts, the Tribunal had decided the issue in ITA No. 240/Jodh/2013 by observing as under:- "10. After circumspecting the entire records vis-à-vis the oral submissions, we are of the considered opinion that ground n .....

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..... bad and doubtful debts. In view of the above, we find that the assessment order dated 09.09.2010 is neither erroneous nor prejudicial to the interest of the Revenue. The impugned order of CIT passed u/s 263 is set aside the appeal of the assessee is allowed. 11. Therefore, by respectfully following the ratio decidendi or the above Tribunal Order we allow ground no. (2) of this appeal in favour of the assessee. These provisions which are in line with the RBI guidelines become allowable." 3.5 The facts are identical; there is no change into facts and circumstances. It is pointed out by the Ld. Counsel for the assessee that this is a Scheduled Bank. This fact is not rebutted by the Revenue by placing any contrary material on record. There .....

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