2026 (7) TMI 1027

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....st, we take up appeal for AY 2012-13 which arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 13-12-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 144 r.w.s. 147 of the Act on 23-09-2019. The sole issue that falls for our consideration is assessee's claim of deduction u/s 36(1)(viia). Having heard rival submissions, the same is adjudicated as under. 2. It emerges that the assessee's case was reopened to examine deduction of Rs. 133.75 Lacs on account of provisions for nonperforming assets (NPA) in terms of Sec.36(1)(viia). The Ld. AO concurred that as per extant provisions of Sec.36(1)(viia), the assessee was eligible to claim such deduction to the extent of 7.5% of t....

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....he appeal stands dismissed. Assessment Year 2013-14 5.1 In AY 2013-14, the first issue is excess provision made towards NPA for Rs. 811.34 Lacs u/s 36(1)(viia). The assessee claimed provision of Rs. 300 Lacs u/s 36(1)(viia) as against eligible deduction of Rs. 988.76 Lacs computed at 7.5% of total income and 10% of agricultural advances. However, Ld. AO noted that per Audit Report, the assessee was required to make provision for NPA for Rs. 1775.48 Lacs whereas it had already made provisions to the extent of Rs. 2286.82 Lacs. The assessee made further provisions of Rs. 300 Lacs which was claimed as deduction. Therefore, Ld. AO added back excess provision of Rs. 811.34 Lacs (Rs.2282.82 Lacs - Rs. 1775.48 Lacs + Rs. 300 Lacs) while comp....

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....adesh in the case of Kangra Central Co-op Bank Ltd. (145 Taxamnn.com 357), at para-21, held that a perusal of the objects of amending the existing provisions of Section 43D of the Act vide Finance Bill 2017, reveals that the benefit of the existing provision was available to scheduled bank or a public financial institution etc. With a view to provide level playing field to co-operative banks vis-à-vis scheduled banks and to rationalize the scope of Section 43D, it was proposed to introduce the amendment to Section 43D of the Act so as to include co-operative banks other then a primary agricultural credit society or a primary co-operative agricultural and rural development bank. The omission was sought to be corrected by bringing at p....