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2014 (4) TMI 241 - HC - Income TaxDisallowance u/s 36(1)(viia) of the Act – rural branch of the bank - Provision for bad and doubtful debts – Whether the Tribunal is right in interfering with the disallowance qua the provision for bad and doubtful debts of the advances made by the rural branches of the assessee u/s 36(1)(viia) of the Act – Held that:- The decision in Commissioner of Income-tax v. Lord Krishna Bank Lt. [2010 (10) TMI 860 - Kerala High Court] followed – "place" referred to in the definition clause for the purpose of identifying the branch of a Bank as a rural Branch with reference to its location is the revenue village – Decided in favour of Revenue. Entitlement for depreciation - whether the assessee is entitled to depreciation on investments on securities like "Held to Maturity" "Available for sale" and "Held for Trade" - Held that:- The decision in Commissioner of Income-tax v. Nedungadi Bank Ltd [2002 (11) TMI 29 - KERALA High Court ] followed - the securities held by the assessee-bank in are the stock-in-trade of the business of the assessee-banks and the notional loss suffered on account of the revaluation of the said securities at the close of the year is an allowable deduction in the computation of the profits – Decided against Revenue. Accrual of interest - Interest credited to P/L account – Held that:- The decision in Commissioner of Income-tax vs. Federal Bank Ltd [2008 (1) TMI 195 - KERALA HIGH COURT] followed – Merely because the assessee has declared it as amount receivable in the course of time, it does not mean that interest on income had in fact accrued to the assessee – Decided against Revenue.
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