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2024 (2) TMI 1280 - AT - Income TaxValidity of revision proceedings u/s 263 - Adoption of either of view by AO - allowability under section 36(1)(viia) - HELD THAT:- As observed that different benches of ITAT have taken different views on the issue of allowability under section 36(1)(viia) deduction for provision for standard assets. The ITAT Indore Bench in the case of Vikramaditya Nagrik Sahkari Bank Maryadit Vs. ACIT [2018 (3) TMI 1516 - ITAT INDORE], Kotak Mahindra Bank Limited [2023 (2) TMI 1005 - ITAT MUMBAI] and Dy.CIT Vs. M/s.Punjab Gamin Bank [2016 (6) TMI 1443 - ITAT AMRITSAR] = had held that deduction under section 36(1)(viia) is allowable for provision for standard assets which is basically in the nature of bad & doubtful debts. As relying on AMITABH BACHCHAN [2016 (5) TMI 493 - SUPREME COURT] and MEPCO INDUSTRIES LIMITED. [2006 (11) TMI 164 - MADRAS HIGH COURT] when two views are legally possible and AO adopts one view the Assessment Order cannot be said to be erroneous for the CIT to invoke jurisdiction u/s 263. In this case, applying the above principle of law, it is held that assessment order is not erroneous and prejudicial to the interest of the revenue and hence the order under section 263 is bad in law. Accordingly, appeal of the assessee is allowed.
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