TaxTMI 
TaxTMI 
2025 (6) TMI 572
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....e are as under: "1. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition / disallowance u/s 36(1)(via) of the Act of Rs. 50,00,000/- made by the AO by observing that the assessee is not eligible to claim deduction for the provisions for bad and doubtful debt as the assessee bank having no rural branches. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition / disallowance u/s 36(1)(viii) of the Act of Rs. 1,75,00,000/- made by the Ao on account of non allowable deduction as the assessee failed to prove with supporting documentary evidences for the advancement of loan given by the assessee during the year under consideration." 3. The appel....
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....nish all necessary documents to justify the claim of deduction/s 36(1)(viii) of the Act; hence, he disallowed the deduction claimed u/s 36(1)(viii) of the Act. 4. Aggrieved by the order of AO, the revenue filed appeal before the CIT(A). The CIT(A) has reproduced the submission of the appellant, which is at pages 3 to 10 of the appellate order. Before the CIT(A), the appellant relied on the decision of Hon'ble Supreme Court in case of Catholic Syrian Bank Limited vs. CIT, 343 ITR 270 (SC) and submitted that provisions of section 36(1)(vii) and 36(1)(viia) are distinct and independent of each other. The CIT(A) held that the appellant being co-operative bank, is duly entitled for deduction u/s 36(1)(viia) of the Act on account of provisions f....
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....mitted that provisions of section 36(1)(vii) and 36(1)(viia) of the Act, pertain to independent items of deductions. 7. We have heard both the parties and perused the materials available on record. We have also deliberated upon the decisions relied upon by both sides. The deduction/s 36(1)(viia) pertains to provisions for bad and doubtful debts made by a scheduled bank or a non-scheduled bank or a co-operative bank, other than the primary agricultural credit society or a primary co-operative agricultural and rural development bank. An amount not exceeding 71/2 % of the total income computed before making any deduction under the above Clause and Chapter VI A, and an amount not exceeding 10% of the aggregate average advances made by the rura....
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....d:- Provisions for BDDR 50,00,000 Total Income For Claiming deduction u/s 36(1)(viia) (1 + 2) 27,88,18,770 3. Deduction Allowance to assessee u/s 36(1)(viia) (a) 7.5% of Total Income Add: (b) 10% of avg rural advance 2,09,11,4080 4. Amt eligible for deduction u/s 36(1)(viia) (a +b) 2,09,11,408 5. Deduction claimed by assessee u/s 36(1)(viia) 50,00,000 7.1 Thus, even after ignoring the 10% of average rural advance, the assessee was still eligible for deduction of Rs. 2,09,11,408/-. As against the above sum, it has claimed deduction of Rs. 50,00,000/- u/s 36(1)(viia) of the Act. Hence, the CIT(A) has rightly allowed the claim of the assessee and the same is upheld. Accordingly, ground no.1 rai....