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TMI Blog2018 (7) TMI 2316X X X X Extracts X X X X X X X X Extracts X X X X ..... s 2009-10 to 2012-2013, include those which assail the validity of the re-assessments for the said years. Ld. Counsel for the assessee submitted that he was not pressing such grounds assailing the validity of the re-assessments. Accordingly, grounds assailing validity of the re-assessment for assessment years 2009-10 to 2012-13 are dismissed as not pressed. 2. This leaves us with grounds which are common for all the assessments, which assails disallowance of deduction claimed by the assessee u/s.36(1) (viia) of the Income Tax Act, 1961 (in short ''the Act''). Ld. Counsel for the assessee submitted that it had claimed the following amounts as deduction u/s.36(1)(viia) of the Act, for the impugned assessment years as under:- Assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Submission was that, assessee's claim u/s.36(1) (viia) of the Act was denied by the lower authorities for a reason that provision as required under the said Section was not created. As per the ld. Authorised Representative, lower authorities had held that creation of a provision for bad and doubtful debts was a necessary pre-requisite for preferring a claim u/s. 36(1) (viia) of the Act. Further, As per the ld. Authorised Representative, lower authorities relied on CBDT instruction No.17/2008, dated 26.11.2008, and decision of a Coordinate Bench in the case of M/s. Salem District Central Co-operative Bank Ltd vs. DCIT ( ITA No.1168/Mds/2016) for taking this view. Contention of the ld. Authorised Representative was that though assessee did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount not exceeding seven and one-half per cent. of the total income (computed before making any deduction under this clause and Chapter VI-A) and an amount not exceeding ten per cent. of the aggregate average advances made by the rural branches of such bank computed in the prescribed manner : Provided that a scheduled bank or a non-scheduled bank referred to in this sub-clause shall, at its option, be allowed in any of the relevant assessment years, deduction in respect of any provision made by it for any assets classified by the Reserve Bank of India as doubtful assets or loss assets in accordance with the guidelines issued by it in this behalf, for an amount not exceeding five per cent. of the amount of such assets shown in the books o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion that these were actually not provision for bad and doubtful debts, but something else, like creation of a Reserve. Though peculiarities of nomenclature by itself will not render the assessee ineligible for claiming deduction available to it u/s.36(1) (viia) of the Act, it is required for the assessee to show that these were indeed provisions for bad and doubtful debts. In the circumstances of the case, we are of the opinion that this issue requires a fresh look by the ld. Assessing Officer. We set aside the orders of the lower authorities and remit the question whether assessee could be given any deduction u/s.36(1) (viia) of the Act back to the file of the ld. Assessing Officer for consideration afresh in accordance with law. 5. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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