2025 (3) TMI 2221

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....me disclosing total income of Rs. 1,20,20,99,660/- and also filed revised return of income declaring total income of Rs. 1,14,48,64,960/-. The case of the assessee was selected for scrutiny, notices were issued and after hearing the assessee the assessment was completed by declaring total income of Rs. 1,32,07,19,840/- as the AO has added an amount of Rs. 10,70,70,590/- u/s 36(1)(viia) and further added Rs. 6,79,97,094/- by making disallowance u/s 36(1)(viii) of the Act. 3. Aggrieved by the said order, the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been allowed thereby directing the AO to delete the amount of Rs. 10,70,70,590/- and also accepted the claim made by the assessee u/s 36(1)(viia)....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... scheme of KCC loan is valid for five years subject to annual review and annual review does not curtail the term of the loan. The Ld. Counsel further submits the CC limit and term loan are two distinct component and these are the only modes of disbursing loans. The Ld. A.R by supporting the order of Ld. CIT(A) has submitted that there is no infirmity in the impugned order. 6. Upon hearing the submission of the counsel of the respective parties, we have perused the order of AO and Ld. CIT(A),and there is no dispute that the assessee derived income from banking activities. There are only two grounds by which Learned ACIT has objected the allowance of claim u/s 36(1)(viia) as - the list of rural branches contained number of branches having ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... which is placed on record. On the first issue of allowability of additional claim of provision for bad debts u/s 36(1)(viia), the reason of disallowance made by the AO is that the list of branches supplied by the appellant contains branches of the places having population excess of 10,000. However, neither in the assessment order nor in the remand report, the AO has given the list of such branches, where the population exceeds 10,000. The appellant on the other hand submitted list of rural branches of the bank as per Census, 2011 supplied by the RBI, which is placed on record. The list contains a total of 660 branches, as certified by RBI." 8. The Ld. CIT(A) after going over the calculation submitted by the assessee has passed an order ....