2016 (2) TMI 1387

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.... Agrawal. ORDER PER MUKUL K. SHRAWAT, J.M. This is an appeal filed by the Revenue Department arising from the order of learned CIT(Appeals)-II, Nagpur dated 11-03-2014. Revenue has raised the following grounds of appeal: 1. Whether on the facts and in the circumstances of the case and in law the Ld. CIT(A) is right in directing to AO to allow the deduction u/s 36(1)(vii)(a) of the IT Act, 196....

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....Since the AO had disallowed the claim of bad and doubtful debt, hence the matter was carried before the first appellate authority. 3. Learned CIT(Appeals) has considered several case laws and the provisions of the Act in the light of the Banking Regulation Act and there after held that the actual amount debited on account of provisions for bad and doubtful debt is an allowable deduction as per th....

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....ind Sahakari Bank Ltd., Katol (ITA No. 376 & 377/Nag/2013, Asstt. Years 2009-10 and 2010-11) order dated 16th Sept., 2015 wherein after considering the provisions of section 36(1)(vii)(a) and the Banking Regulation Act, the coordinate bench has held as under : "10. Upon careful consideration we note that the AO has made the disallowance u/s 36(1)(viia) by holding that the assessee bank is neithe....

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....e with the learned counsel of the assessee that once the Reserve Bank of India recognizes and notifies a Cooperative Bank as a non scheduled bank, the Revenue cannot contend otherwise. Admittedly upon fulfilling all the necessary conditions of the RBI, the assessee bank has been duly notified as a non schedule bank and hence being a non schedule bank it is entitled to deduction u/s 36(1)(viia) of ....