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2020 (5) TMI 295 - ITAT PUNEDeduction u/s 36(1)(viia) - provision created for bad and doubtful debts u/s 36(1)(viia) which included a provision in respect of standard assets disallowed - As per AO deduction u/s 36(1)(viia) is not allowable with respect to the provision in respect of standard assets as according to him, it was good and recoverable and provision made on such assets cannot be considered to be a provision for bad and doubtful debts - HELD THAT:- As relying on BELLAD BAGEWADI URBAN SOUHARD SAHAKARI BANK NIYAMIT VERSUS THE COMMISSIONER OF INCOME TAX (APPEALS) BELAGAVI [2018 (3) TMI 737 - KARNATAKA HIGH COURT] RBI guidelines prescribes the provision on standard assets from the year ended March 31, 2000 directing the banks to make a general provision of a minimum of 0.25% on standard assets. Decision rendered by the CIT is unjustifiable for the reason that assessee is bound by the guidelines issued by the Reserve Bank of India. Any contrary view taken by the Income Tax Authorities would disentitle the assessee from claiming deduction u/s 36(1)(viia). Assessee is eligible for deduction and we thus, direct the AO. - Decided in favour of assessee.
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