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2022 (7) TMI 1389 - AT - Income TaxDisallowance u/s 36(1)(viia) - provision for bad and doubtful debts - HELD THAT:- We find that combination of this Bench in assessee’s own case for the A.Y. 2010-11 [2022 (5) TMI 856 - ITAT SURAT] has confirmed the order of Ld. CIT(A), thereby decided the appeal in favour of the assessee as held that the assessee is clearly eligible for the deduction under section 36(1)(viia) as it fulfilled the two condition that any provisions for bad and doubtful debts made by Co-operative bank is allowable if it does not exceed 7 ½ of total income (computed before making deduction under this clause under chapter VIA) and an amount not exceeding 10% of aggregate average advances made by rural branch. AO has not doubted the number of rural branches as defined under section 36(1) (viia) (d)(ia) or the total of the advances made by rural branches of assessee-bank and the computation made in the prescribed manner. As the provision for bad and doubtful debts against standard assets is covered in the main provisions of Sec. 36(1)(viia) of the IT Act, therefore, uphold the order of the CIT(A) who we find had rightly deleted the addition made by the A.O on the said count. Appeal of the revenue is dismissed.
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