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2023 (10) TMI 911 - AT - Income TaxDeduction u/s 36(1)(viia) in respect of provision of the bad and doubtful debt - HELD THAT:- Tribunal in appeal arising from regular assessment order [2023 (8) TMI 630 - ITAT MUMBAI] has already allowed the claim of deduction under section 36(1)(viia) as the assessee was carrying a provision at the year end, which being more than the claim of deduction U/s 36(1)(viia) of the Act, therefore no disallowance was required to be made and accordingly deleted the addition. Since, the Tribunal (supra) has already allowed claim of deduction of the assessee u/s 36(1)(viia) of the Act, accordingly, following the finding of the Tribunal (supra) , we direct the Assessing Officer to allow the claim of the deduction under section 36(1)(viia) to the extent of provision for bad and doubtful debt available at the year end. Inclusion of standard asset and restructured debt as part of non-performing assets (NPA) - Since now the assessee has forgone this claim for the year under consideration, we direct the Assessing Officer to verify this fact and exclude the standard asset and restructured debt as part of provision for bad and doubtful debt and allow the claim of the assessee for deduction under section 36(1)(viia) as discussed above. Liability for interest u/s 234B - HELD HAT:- As it is matter of verification whether the refund granted to the assessee u/s 143(1) exceed the refund granted on regular assessment. Before us no details of refund claimed and allowed u/s 143 (1) of the Act and refund which was due and allowed under regular assessment / reassessment , has been provided. Therefore, no infirmity in the direction of CIT(A) issued for verification. We again direct the Ao to comply with the direction of ld CIT(A), if not already complied. Accordingly, the ground of appeal of the assessee is allowed for statistical purpose. Interest u/s 244A - On perusal provisions of section 244A of the Act, we observe that legislature has provided for computation of the interest for every month or part of the month comprised in the period. Therefore, the finding of the Ld. CIT(A) that interest u/s 244A was to be calculated on annual basis is incorrect. Accordingly, we set aside the finding of the Ld. CIT(A) on the issue in dispute and restore the matter back to the file of the Assessing Officer for computing of the interest under section 244A of the Act in view of the provisions of section 119A(b) of the Act. The ground of the appeal of the assessee is accordingly allowed for statistical purposes.
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