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2013 (6) TMI 457 - ITAT CUTTACKEntitlement to the deduction u/s. 36(1)(viia) - Held that:- Perusal of order of CIT(A) shows that he has considered the provisions of section 36(1)(viia) as was available at its introduction by the Finance Act, 1979. As the assessee is a co- operative bank and is doing the business of banking as has been recognized in the assessment order by the AO and as the assessment year involved is AY 2009-10 and as a co-operative bank such as the assessee is being introduced in the provisions of section 36(1)(viia) w.e.f. 01.04.2007 by the Finance Act, 2007 the assessee is entitled to the deduction of 7½% of its total income as provided in the said section. This ground of appeal of assessee stands allowed. Provision for leave salary and provision against the standard asset - Held that:- As it is noticed that the assessee is asking for deduction in respect of provisions which are not allowable as an expenditure when computing the taxable income under the I. T. Act & perusing decision of Southern Technologies Ltd. [2010 (1) TMI 5 - SUPREME COURT OF INDIA] the disclosures norms of the Reserve Bank of India would not affect the computation of taxable income under the I. T. Act. Thus considering all as also on the ground that a provision is not a permissible deduction under the I. T. Act issue decided against assessee.
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