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2015 (7) TMI 1280 - AT - Income TaxDeduction u/s 36(1)(viia) - whether deduction be calculated considering the loans and advances made during the year only by rural branches and not on the cumulative balances of loans and advances of the bank over the years? - Held that:- For the purpose of section 36(1)(viia), the aggregate average advances made by the rural branches of a scheduled bank shall be computed by taking the amounts of advances made by each rural branch as outstanding at the end of the last day of each month comprised in the previous year has to be aggregated separately. CIT(A) instead of giving the direction to the AO to take the amount of advances as outstanding at the end of the last day of each month in the previous year di rec ted the Assessing Officer to take loans and advances made during the year only. We, therefore, set aside the order of CIT(Appeals) on this issue and amend the direction of the CIT(Appeals) and direct the Assessing Officer to compute 10% of the aggregate monthly average advances made by the rural branch of such Bank by taking the amount of advances by each rural branch as outstanding at the end of the last day of each month comprised in the previous year and aggregate the same separately as given under Rule 6ABA of the Income Tax Rules, 1962. - Decided in favour of assessee for statistical purposes.
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