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TMI Blog2023 (1) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... that as the bank accounts were admittedly prepared on accrual basis and revenue was recognized by following mercantile method except for certain items which were accounted on cash basis? - HELD THAT:- Issue decided in favour of assessee as relying on [ 2022 (9) TMI 1406 - KARNATAKA HIGH COURT] Value of investment in HTM Securities - Whether Tribunal is right in law in setting aside disallowances on account of AFS and HFT category of investments? - HELD THAT:- Issue decided in favour of assessee [ 2020 (11) TMI 1087 - KARNATAKA HIGH COURT] Disallowances u/s 36(1) - as submitted that the word used in the statute is aggregate average advances made by the rural branches - HELD THAT:- The manner in which the computation has been made has been gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is also answered in favour of the assessee . Disallowance u/s 14A - whether conditions for invoking said provisions as fully satisfied in the case of the assessee? - HELD THAT:- Issue answered in favour of the assessee and against the Revenue in the decision of Supreme Court of India in South Indian Bank Ltd[ 2021 (9) TMI 566 - SUPREME COURT] X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessing authority by placing reliance on its earlier judgment in the case of Vijaya Bank even though the said judgment has not reached finality and assessing authority had rightly observed that only incremental advances has to be considered for computing 'Agreegate Rural Advances' as per Rule 6ABA of Income Tax Rules? 5. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in deleting the disallowance made under section 14A of the Act by even when the conditions for invoking said provisions as fully satisfied in the case of the assessee? 6. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in setting aside disallowances on account of AFS and HFT category of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the assessee and against the Revenue. 6. In so far as question No.4 is concerned, adverting to Section 36(1)(viia) of the Income Tax Act, 1961, Shri Aravind submitted that the word used in the statute is aggregate average advances "made" by the rural branches. To quote an example, he submitted that for A.Y. is 2013-14 (F.Y. 2012-13) if the bad debt as on 31.03.2012 is considered to be as Rs.1 Crore by virtue of making provisions subsequently, the assessee will be entitled for double benefit because provisions in respect of 10% of the bad debt of provisions of Rs.1 Crore towards bad debt was already made as on 31.03.2012. Therefore, if the same amount is carried forward for the next F.Y., the assessee will be entitled for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision has been followed in Vijaya Bank case. The manner in which the computation has been made has been given in the case of Vijaya Bank Case. Order passed by the Tribunal in Canara Bank's case followed in Vijaya Bank case has attained finality and the Revenue has not challenged the said order. Further, the High Court of Calcutta, while considering an identical situation as recorded thus, "Mr. Khaitan, learned senior Advocate appeared on behalf of the assessee and submitted that the computation to be made as prescribed by Rule 6ABA is for the purpose of fixing the limit of the deduction available under section 36(1)(viia). Clauses (a) and (b) in Rule 6ABA cannot be given the restricted interpretation. The amounts of advances as out ..... X X X X Extracts X X X X X X X X Extracts X X X X
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