2012 (11) TMI 1221

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....arunakara Rao (Accountant Member) This appeal filed by the Revenue on 9.11.2010 is directed against the order of CIT (A)-4, Mumbai dated 24.8.2010 for the assessment year 1996-1997. 2. In this appeal, Revenue has raised the following grounds which read as under: "1. The order of the CIT (A) is opposed to law and facts of the facts. 2. On the facts and in the circumstances o....

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....tion u/s 36(1)(vii) of the Act. In this regard, the Ld Counsel mentioned that originally, Assessing Officer is of the opinion that the provision for bad debts amounting to Rs. 105,99,46,975/- has to be deducted from combined write off of Rural and Non-Rural advances as against the assessee's claim that the said provision has to be adjudicated set off against the Rural debts only and Non-Rural debt....

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.... entitled to both the deduction, one under clause (vii) on the basis of actual write off and another, on the basis of clause (viia) in respect of a mere provision. Further, to prevent double deduction, the proviso to clause(vii) was inserted which says that in respect of bad debt(s) arising out of rural advances, the deduction on account of actual write off would be limited to the excess of the am....

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....debt(s) arising out of urban advances, the allowance thereof in the assessment is not affected, controlled or limited in any way by the proviso to clause(vii)." 3.1. Further, Ld Counsel referred the Tribunal order in assessee's own case for the AY 1989-1990, which was decided in favour of the assessee relying on the Special Bench decision in the case of CIT vs. Catholic Syrian Bank Ltd. (88 ITD....