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2021 (12) TMI 17 - HC - Income TaxAllowability of bad debts and bad and doubtful debts u/s 36(1)(vii) - Determination of Rural Branch - Place - claim of the assessee for bad debts u/s 36(1)(vii), and the claim in the credit balance in the provision for bad and doubtful debts u/s. 36(1)(viia) be disallowed? - HELD THAT:- The question concerning bad debts falling under Section 36(1)(vii) is covered in favour of the assessee in reported judgment of the Supreme Court in Catholic Syrian Bank v. Commissioner of Income Tax [2012 (2) TMI 262 - SUPREME COURT] and had answered the point in favour of assessee and against the Revenue. Valuation of unquoted securities - HELD THAT:- The question is no more res integra and is answered by following the precedents in Commissioner of Income Tax v. Nedungadi Bank Ltd [2002 (11) TMI 29 - KERALA HIGH COURT] and Commissioner of Income Tax v. Lord Krishna Bank Ltd (2011) [2010 (10) TMI 860 - KERALA HIGH COURT], and this Court had answered in favour of the assessee Provision for Bad debts - Rural branch - HELD THAT:- Classification between rural and other branches of a bank is made based on the population in the place where the concerned branch is located. While the assessee's case that found acceptance with the Tribunal is that “place” referred to in the above definition clause is the ward of a panchayat or municipality, the Assessing Officer took the view that “place” contained in the definition clause should mean a revenue village. No doubt, “place” as such is not defined in the definition clauses and so much so, we have to find out the scope and meaning of “place” referred to in the section. Standing counsel for the Department produced before us last published Census Report of 2001. Even though the previous Census Report may be the relevant one, we feel the scope of “place” as referred to in the Census Report produced could be adopted for the purpose of this case - Thus the question is answered in favour of revenue and against the assessee
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