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2023 (7) TMI 1266 - AT - Income TaxDisallowance of provision on standard assets - Addition on the ground that it pertains to provision for standard assets and not for bad and doubtful debts and deduction u/s 36(1)(viia) can be allowed only in respect of provisions which are made for bad and doubtful debts, same is liable to be disallowed - HELD THAT:- We are of inclined to agree with the contentions put forth by assessee on this issue. In the case of ACIT Vs Jila Sahakari Kendriya Bank [2023 (5) TMI 68 - ITAT INODRE] ITAT held that provision for Standard Assets are allowable under Section 36(1)(viia). The ITAT in the case of Nagaur Urban Co-operative Bank Ltd. [2013 (11) TMI 1696 - ITAT JODHPUR] also held that the “provision for standard assets” was held to be a provision for bad debts allowable u/s 36(1)(viia). Thus we too hold that the provision made by assessee qua standard assets is allowable u/s 36(1)(viia) of the Act. Disallowance on account of member’s gift expenses - assessee had only made provision for gifts to members of the bank and hence it is not allowable as business expenditure - assessee did not furnish any documentary proof in support of the genuineness of the aforesaid expenses - HELD THAT:- Similar expenses have been allowed in the immediately preceding assessment year, in the interest of justice, the matter is being set aside to the file of Ld. CIT(Appeals) to check the veracity/genuineness of expenses incurred for gifts to its members and the assessee may also give supporting evidence in support of genuineness of the claim. Golden/Diamond Jubilee expenses - Addition made as expenses as bogus and not incurred for the purpose of business - HELD THAT:- Department has made a specific allegation that the assessee has not been able to establish the genuineness of the expenses and the fact that these expenses had in fact been incurred at all. Ld. CIT(Appeals) in the appellate order has made a specific noting that statement of account is not supported by any records and evidences. Accordingly, in the interest of justice, the matter is being set aside to the file of Ld. CIT(Appeals) to check the veracity/genuineness of expenses incurred. Disallowance u/s 14A r.w.r. 8D - assessee had earned a dividend income - HELD THAT:- In the case of South Indian Bank Ltd. [2021 (9) TMI 566 - SUPREME COURT] held that where interest free funds available with assessee banks exceeded their investments in tax-free securities; investments would be presumed to be made out of assessee's own funds and proportionate disallowance was not warranted u/s 14A on ground that separate accounts were not maintained by assessee for investments and other expenditure incurred for earning tax-free income. In the case of UTI Bank Ltd. [2022 (10) TMI 613 - SC Orde] held that where interest free funds available with assessee exceeded their investments in tax-free securities, investments would be presumed to be made out of assessee's own funds and proportionate disallowance was not warranted u/s 14A.
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