TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Appeal dismissed in bad debts provision case for Co-operative banks</h1> <h3>Kottakkal Co-op Urban Bank Ltd. Versus Income-tax Officer, Ward-1, Tirur</h3> The appeal against the disallowance of provision for bad and doubtful debts u/s 36(1)(viia) for the assessment year 2007-08 was dismissed. The Tribunal ... - Issues involved: Appeal against disallowance of provision for bad and doubtful debts u/s 36(1)(viia) of the Act for assessment year 2007-08. Interpretation of the term 'rural branch' in relation to Co-operative banks.Issue 1: Disallowance of provision for bad and doubtful debts u/s 36(1)(viia) of the Act:The assessee claimed deduction for provision for bad and doubtful debts u/s 36(1)(viia) at 7.5% of Gross total income and 10% of aggregate advances made by rural branches. The AO disallowed the claim as no provision was made as required u/s 36(1)(viia). The appeal before Ld CIT(A) was unsuccessful. The Tribunal referred to a previous case regarding the definition of 'rural branch' and decided in favor of the assessing officer, setting aside the order of Ld CIT(A).Issue 2: Interpretation of 'rural branch' in relation to Co-operative banks:The alternative plea raised by the assessee contended that the definition of 'rural branch' under sec. 36(1)(viia) does not apply to Co-operative banks. The Tribunal analyzed relevant provisions of the Banking Regulation Act, 1949, and concluded that a Co-operative bank falls under the category of a 'non-scheduled bank' as per the definition provided. Therefore, the decision of the Jurisdictional High Court regarding the definition of 'rural branch' was held to apply to the assessee, and the alternative plea was rejected. The Tribunal upheld the decision of the assessing officer on this issue.In conclusion, the appeal of the assessee against the disallowance of provision for bad and doubtful debts u/s 36(1)(viia) was dismissed. The Tribunal also affirmed the interpretation of 'rural branch' in relation to Co-operative banks, following the decision of the Jurisdictional High Court.
TaxTMI 
TaxTMI 
