2018 (7) TMI 2316

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....ee in its appeals for assessment years 2009-10 to 2012-2013, include those which assail the validity of the re-assessments for the said years. Ld. Counsel for the assessee submitted that he was not pressing such grounds assailing the validity of the re-assessments. Accordingly, grounds assailing validity of the re-assessment for assessment years 2009-10 to 2012-13 are dismissed as not pressed. 2. This leaves us with grounds which are common for all the assessments, which assails disallowance of deduction claimed by the assessee u/s.36(1) (viia) of the Income Tax Act, 1961 (in short ''the Act''). Ld. Counsel for the assessee submitted that it had claimed the following amounts as deduction u/s.36(1)(viia) of the Act, for the impugned asses....

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.... (v) Sundry debtors over 3 years Rs. 2,00,736/- (vi) Bullet Jewel loan provision Rs. 21,45,389/- (vii) Overdue interest reserves Rs. 1,50,99,621/-   Total Rs. 9,73,86,004/- Submission was that, assessee's claim u/s.36(1) (viia) of the Act was denied by the lower authorities for a reason that provision as required under the said Section was not created. As per the ld. Authorised Representative, lower authorities had held that creation of a provision for bad and doubtful debts was a necessary pre-requisite for preferring a claim u/s. 36(1) (viia) of the Act. Further, As per the ld. Authorised Representative, lower authorities relied on CBDT instruction No.17/2008, dated 26.11.2008, and decision of a C....

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....led bank not being a bank incorporated by or under the laws of a country outside India or a nonscheduled bank 3or a co-operative bank other than a primary agricultural credit society or a primary cooperative agricultural and rural development bank, an amount not exceeding seven and one-half per cent. of the total income (computed before making any deduction under this clause and Chapter VI-A) and an amount not exceeding ten per cent. of the aggregate average advances made by the rural branches of such bank computed in the prescribed manner : Provided that a scheduled bank or a non-scheduled bank referred to in this sub-clause shall, at its option, be allowed in any of the relevant assessment years, deduction in respect of any provi....