9911796707
TMI Blog2018 (6) TMI 1851X X X X Extracts X X X X X X X X Extracts X X X X ..... ction under section 36(viiia) of the Act, the assessee is required to make provision and debit the same from the P L account. Hence, the assessee was required to make the provision in accordance with the Act. The copy of P L account submitted by the Ld. counsel prima facie shows that the assessee bank had made the provision for bad and doubtful advances to the extent of Rs. 45,84,000/-. Accordingly, deduction to that extent cannot be denied under the provisions of section 36(viia) of the Act. Since there is no reference of this document in the orders passed by the authorities below, in our considered view the same needs verification by the AO. Hence, in the interest of justice, we set aside the findings of the Ld. CIT(A) and restore the sol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same in the P L account. On being asked, the authorized representative submitted that the assessee has followed the provisions as per the RBI norms. However, the AO rejecting the said plea made addition of Rs. 25,69,45,585/- and determined the total income of the assessee at Rs. 26,66,34,465/-. The assessee challenged the assessment order before the Ld. CIT (A). The Ld. CIT (A) after hearing the assessee dismissed the appeal and upheld the action of the AO. 3. Aggrieved by the impugned order passed by the Ld. CIT (A), the assessee has preferred this appeal before the Tribunal on the following effective ground:- In the facts and circumstances of the case and in law, the Ld. CIT (A) erred in confirming addition of Rs. 25,69,45,585/- made by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iia) are statutory deductions allowable under the Act and the deductions have to be allowed whether the provisions is made or not. However, in our considered view there is no merit in the argument of the Ld. counsel. We agree with the Ld. CIT(A) that in order to claim deduction under section 36(viiia) of the Act, the assessee is required to make provision and debit the same from the P L account. Hence, the assessee was required to make the provision in accordance with the Act. The copy of P L account submitted by the Ld. counsel prima facie shows that the assessee bank had made the provision for bad and doubtful advances to the extent of Rs. 45,84,000/-. Accordingly, deduction to that extent cannot be denied under the provisions of section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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