Deduction for rural branch advances must be verified before allowance and past assessments reviewed for compliance. Banks may claim a deduction for provision for bad debts up to ten per cent of the aggregate average advances made by their rural branches as defined in Explanation (ia) to section 36(1)(viia). The Board found claims allowed without verifying rural-branch eligibility, causing under-assessment. Assessing Officers must verify (by test check) that branches qualify as rural branches before allowing deduction and should review completed assessments and take remedial action where necessary.
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Provisions expressly mentioned in the judgment/order text.
Deduction for rural branch advances must be verified before allowance and past assessments reviewed for compliance.
Banks may claim a deduction for provision for bad debts up to ten per cent of the aggregate average advances made by their rural branches as defined in Explanation (ia) to section 36(1)(viia). The Board found claims allowed without verifying rural-branch eligibility, causing under-assessment. Assessing Officers must verify (by test check) that branches qualify as rural branches before allowing deduction and should review completed assessments and take remedial action where necessary.
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