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2017 (6) TMI 822 - AT - Income TaxDeduction u/s 36(1)(viia) - Held that:- Assessee has claimed 36(1)(viia) deduction @ 10% on rural advances in its computation of income and carried forward the loss from business. We find that information of provision for bad and doubtful debts are not placed on record before us. Therefore, it is appropriate to remit the matter back to the file of AO with a direction to find out whether assessee has created any provision for bad and doubtful debts and if so, following the judicial pronouncements, he is directed to allow deduction u/s 36(1)(viia) to the extent assessee has created provision for bad and doubtful debts in its books of account. Accordingly, grounds are allowed for statistical purposes. Deduction of interest which was not realized on NPAs - Held that:- We direct the AO to delete the addition made towards interest on NPAs. Accordingly, this ground is allowed in all the AYs under consideration. Outstanding liability of dividend payable - Held that:- We are in agreement with the ld. AR that dividend is appropriation of profit after subjected to tax and it is not a charge on P&L A/c. Therefore, the above outstanding liability cannot be treated as income of the assessee. Accordingly, we uphold the decision of the CIT(A) and dismiss the ground raised by the revenue in all the AYs under consideration. Disallowance not obtained the license from the RBI to run the bank as per the provision of section 22 of the Banking Regulation Act, 1949 - Held that:- CIT(A) has not brought complete facts on record in his findings. Therefore, it needs to be examined properly by the lower authorities, hence, we remit this issue back to the file of the CIT(A) for further verification and adjudication of the issue. Accordingly, this ground is allowed for statistical purposes.
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