2014 (4) TMI 1002

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....appeal. 2. "The Commissioner of Income Tax(Appeals) erred in rejected the provision of Rs.2,93,09,329/- u/s36(1)(viia) made towards bad and doubtful debts. 2.1 The Commissioner of Income Tax erred in holding that the appellant has not claimed the above provision specifically in the return of income and also not raised the same before the assessing officer during the assessment proceedings. 2.2 The Commissioner of Income tax ought to have appreciated that the appellant entitlement u/s. 36(1)(viia) for the above provision which was not specifically claimed in the return however such a claim is legally permissible and legitimate in nature is allowable as per CBDT circular No.14(XI-35) dated 11.04.1955. 3. Without prejudice, claim under sec....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hat as per statements, it had no losses to this effect in impugned assessment year and also that its net profit had to be reworked. He acted accordingly and assessed total income as J58,36,695/-. 6. Aggrieved, the assessee preferred an appeal. Apart from challenging the action of Assessing Officer in disallowing brought forward losses in question; it raised an additional plea that under section 36 (1)(viia), provision for bad and doubtful debts is allowable as deduction in the hands of a cooperative bank. The CIT(A) has dismissed the assessee's appeal by observing as under:- "5. I have gone through the submission made by the appellant and also the order of the Assessing Officer. The Hon'ble Supreme Court in the case of Jute Corporation of....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The assessee has not raised the issue before the Assessing Officer. The information under Rule 6BA which provides the information regarding the eligible amount for deduction u/s36(1)(viia) is also not available on record. Even in the books of account and the P & L A/c the assessee has not made any provision u/s36(1)(viia). It is clearly a new issue raised before the CIT(A) without any material on record. The Hon'ble Apex Court in the case of Jute Corporation of India Ltd also held that ''there may be several factors justifying raising of such new pleas in appeal, and each case has to be considered the question so raised in all its aspects. Of course, while permitting the assessee to raise additional grounds the AAC should exercise his discr....