TaxTMI 
TaxTMI 
2018 (5) TMI 903
X X X X Extracts X X X X
X X X X Extracts X X X X
.... "i. Whether on the facts and in the circumstances of the case the Ld. Tribunal has erred in law in allowing deduction under section 36(1)(viia) of the I.T.Act, 1961, for the same advances made for all previous years leading to multiple deductions in every assessment year by misinterpreting the Rule 6ABA of the I.T. Rules, 1962 and also against the ratio of judgment in the case of J.K Synthetics Ltd. vs. UOI 199 ITR 43 (SC)." ii. Whether on the facts and in the circumstances of the case conclusion arrived at by the Ld. Tribunal in granting the aforesaid relief to the assessee, is perverse" Relevant facts are that the assessee is a regional rural bank and its main business is banking activity. The assessee claimed deduction for the asse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o be calculated considering the loans and advances made during the year only by the rural branches of the bank in the prescribed manner as envisaged under Clause (viia)(a)of section 36(1), not on the cumulative balance of loans and advance of the bank over the years. Bad debt, if any, arises out of advances made in the earlier years would be covered under clause (viia) of section 36(1) of the I.T.Act. In the light of above discussion, the AO is, it is found that the AO has rightly computed the deduction allowable to the assessee bank under Clause (viia)(a) of section 36(1). His action is confirmed." The assessee's appeal, however, was allowed by the Tribunal. The Tribunal's interpretation of the aforesaid statutory provisions would app....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ned by the assessee has not been expressly provided. He relied on a judgment of the Supreme Court in the case of Escorts Ltd. v. Union of India reported in (1993) 199 ITR 43, on the following portion in the said judgment appearing in page 64 of the report. "A double deduction cannot be a matter of inference, it must be provided for in clear and express language, regard being had to its unusual nature and its serious impact on the revenues of the State." Mr. Khaitan, learned senior Advocate appeared on behalf of the assessee and submitted that the computation to be made as prescribed by Rule 6ABA is for the purpose of fixing the limit of the deduction available under section 36(1)(viia). Clauses (a) and (b) in Rule 6ABA cannot be given t....