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2021 (3) TMI 1357 - AT - Income TaxDeduction towards Recovery of Bad Debts of Rural Branches - bad debts written-off relating to rural branches were not claimed as deduction in the earlier years since the credit balance in the provision for bad and doubtful debts relating to rural branches had always been more than the bad debts written off relating to rural branches - HELD THAT:- Before us, it is admitted position that similar issue arose before Tribunal in assessee’s own case for AY 2008-09 [2020 (2) TMI 1350 - ITAT MUMBAI] wherein the matter was decided in assessee’s favor subject to certain verification of by Ld. AO.Since issue is identical, respectfully following the above decision, this issue is principally decided in assessee’s favor subject to verification by Ld. AO on similar lines. This ground stand allowed for statistical purposes. Disallowance u/s 40(a)(ia) - During survey on one of the branches of the assessee, it was found that the assessee did not deduct TDS in certain cases where interest credited / paid exceeded basic exemption limit. The failure to do so would attract disallowance of interest expenditure u/s 40(a)(ia) - HELD THAT:- It has been submitted before us that evidence to the satisfaction of Ld. AO for reasons of non-deduction tax such as Form 15G/15H etc. could not be furnished since considerable period of time had lapsed. The Ld. AR submitted that tax was automatically deducted by the systems and hence the chances of non-deduction without adequate reasons were remote. Upon due consideration of factual matrix, the bench deem it fit to grant another opportunity to the assessee to furnish requisite evidences before Ld. AO in support of non-deduction of tax at source or alternatively prove applicability of second proviso to Sec. 40(a)(ia). This ground stand allowed for statistical purposes. Applicability of Sec.115JB to the assessee Bank - HELD THAT:- We find that the issue of applicability of Section 115JB (prior to its amendment by virtue of Finance Act, 2012) to Banking Company governed by the provisions of Banking Regulation Act, 1949 is squarely covered in assessee’s favor by the decision of Hon’ble High Court of Bombay in assessee’s own case for AY 2005-06[2019 (5) TMI 355 - BOMBAY HIGH COURT] - A copy of the same is on record. The Ld. DR is unable to controvert the same. Therefore, no fault could be found in the impugned order, in this regard.
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