2015 (8) TMI 1294

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of the Act seeking rectification of the order passed by the Tribunal on the ground that ITAT while deciding department's appeal has failed to decide ground No. 7 relating to allowance of assessee's claim of deduction u/s 36(1)(viia). ITAT after considering the submissions of the parties disposed of the miscellaneous application vide order dated 19/09/14 passed in MA No. 122/Hyd/2014 recalling the order passed in ITA No. 610/Hyd/2013 for the limited purpose of deciding ground No. 7 raised by department. Thus, the present appeal of the department is taken up only for the purpose of deciding ground No. 7. 3. As could be seen in ground No. 7, department has raised the issue relating to allowance of assessee's claim of deduction u/s 36(1)(viia)....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d doubtful debts relating to rural advances in its books of account it is not eligible to claim deduction u/s 36(1)(viia). In support of his contention, ld. DR relied upon the decision of the Hon'ble P&H High Court in case of State Bank of Patiala Vs. CIT, 272 ITR 54 and the decision of the ITAT in assessee's own case for AY 2010-11 in ITA No. 51/Hyd/2015 dated 10/04/2015. Ld. AR on the other hand submitted, for claiming deduction u/s 36(1)(viia), no provision for bad and doubtful debt is required to be made in books of account. 6. On a reference to the provisions of section 36(1)(viia) of the Act, it is very much clear that for claiming deduction under the said provision, assessee has to create a provision for bad and doubtful debts in it....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... provision of Rs. 22.40 crores (Rs.5.38 crores in respect of urban advances and Rs. 17.02 crores in respect of rural advances) was made by the assessee during the year under consideration. Moreover, all these facts and figures were furnished by the assessee before the learned CIT(A) for the first time and the Assessing Officer therefore, did not have any opportunity to verify the same. The claim of the assessee of having adjusted the amount of Rs. 22.24 crores towards bad debts written off during the year under consideration against the opening balance of the provision of Rs. 40.13 crores was also made by the assessee for the first time before the learned CIT(A), and the Assessing Officer did not have any opportunity to verify the same. Ha....