9911796707
TMI Blog2017 (9) TMI 1982X X X X Extracts X X X X X X X X Extracts X X X X ..... rovides for the treatment of provisions for bad and doubtful debts of an amount not exceeding 7.5% of the total income (computed before making any deduction under this clause and Chapter VIA) and an amount not exceeding 10% of the aggregate average advances made by the rural branches of such banks. The provisions of Section 36(1)(vii) and section 36(1)(viia) are distinct and independent. The provisions of Section 36(1)(viia) are applicable w.e.f. A.Y. 2007-08 to cooperative bank also. Therefore any provision allowed in A.Y. 2007-08 onwards in the case of a cooperative bank under clause (viia) will be hit by this amendment but a provision standing in the account of a cooperative bank prior to 01.04.2006 will not come in the ambit of secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verifying the genuineness of purchases, allow depreciation to the assessee. In case the assessee is not able to file the direct evidences the AO is directed to verify the indirect evidences in the form of confirmation of purchases, etc. Thus, both these grounds are allowed for statistical purposes. Claim of deduction by the assessee under section 36(1)(viia) as per the provisions of income tax law, i.e. 7.5% of the total income before deduction to be allowed under Chapter VIA of the Income Tax Act - HELD THAT:- It is not denied that the assessee is a cooperative bank, therefore in view of provisions of Section 36(1)(viia), in our opinion, the assessee shall be entitled for the deduction @7.5% of the total income (computed before making ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subsequent assessment year 2011-12 onwards. 4. disallowing ₹ 6,397/- u/s 14A of the Income Tax Act 1961, in spite submission of copy of the appellate order in case your appellants for earlier assessment year stating there in that provisions of section 14A are not applicable to your appellants. 5. not computing deduction u/s 36(1) (viia) of the Income Tax Act 1961, as per provision of law i.e. 7.5% of the total income before deduction available under chapter 41 A. 2. Ground No. 1 relates to the disallowance of bad debts written off amounting to ₹ 92,45,525/-. The brief facts of this ground are that the AO disallowed assessee s claim in respect of bad debts written off amounting to ₹ 92,45,525/- on the ground that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed from the chart available on page 15 of the paper book showing the statement of party-wise bad debts written off and the provision existed as on 31.03.2006 that the assessee has written off the bad debts in respect of 31 parties amounting to ₹ 94,45,827/- during the impugned assessment year while the provisions as on 31.03.2006 was to the extent of ₹ 83,39,432.57. The assessee has made provision for assessment years 2007-08, 2008-09 and 2009-10 at ₹ 7,96,787/-, ₹ 5,029/- and ₹ 2,75,628/- respectively. It is a fact that up to A.Y. 2006-07 the income from banking business was fully allowed in the case of the assessee under section 80P of the Income Tax Act. Subsequently by Finance Act, 2006 by insertion of sub- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has claimed deduction in the earlier assessment year. We, therefore, set aside the order of the CIT(A) on this issue and delete the said addition. Thus, this ground stands allowed. 4. Ground Nos. 2 3 relate to the disallowance of ₹ 10,19,667/- being excess claim of depreciation on account of want of proof for additions during the year. After hearing the rival submissions and going through the orders of the tax authorities below we noted that the AO disallowed depreciation on addition of certain fixed assets on the ground that supporting evidences in the form of bills, etc. were not filed by the assessee. The AO noted that the assessee has claimed depreciation on addition of fixed assets of ₹ 111,37,818/- at ₹ 1,18, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction @7.5% of the total income (computed before making any deduction under this clause and Chapter 6A) and an amount not exceeding 10% of the aggregate average advances made by rural branches of such banks computed in the prescribed manner in respect of any provision for bad and doubtful debts made by the assessee. We accordingly direct the AO to allow the deduction to the assessee in respect of any provision for bad and doubtful debts made by the assessee during the year in accordance with the provisions of Section 36(1)(viia). Thus, this ground is allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is partly allowed. Order pronounced in the open court on 12th September, 2017. - - TaxTMI - TMIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
