2016 (6) TMI 600

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the Assessing Officer under section 271(A)(c) of the Income-tax Act, 1961 ? 2. Briefly stated the facts are that the respondent assessee is a Co-operative bank. For the assessment year 2009-2010, the assessee had filed return of income in which the assessee had claimed bad and doubtful debts of Rs. 12.28 crores (rounded off). As per section 36(1)(viia) of the Act, the same had to be restricted to 7.5 per cent of the total income and 10 per cent of the aggregate average advances by the rural branch of the bank. The Assessing Officer noted that the assessee had made provision only of Rs. 3.50 crores by way of bad and doubtful debts while claiming the deduction under this head at Rs. 12.28 crores. After putting the assessee to notice, in t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lty of Rs. 2,71,31,636/- levied by the Assessing Officer under section 271(1)(c) of the Income-tax Act, 1961." 4. Learned counsel for the Revenue submitted that the assessee had made provision for bad and doubtful debts only of Rs. 3.50 crores but claimed much larger amount by way of deduction under section 31(1)(viia) of the Act. The assessee raised such claim year after year. 5. On the other hand, learned counsel Mr. Soparkar for the assessee submitted that there was no concealment of the income on the part of the assessee. The issue itself was highly debatable requiring resolution through opinion of the third member of the Tribunal. In that view of the matter, the Tribunal correctly deleted the penalty. He relied on the decision of....