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2018 (9) TMI 224 - KERALA HIGH COURTClaim of the appellant for write off bad debts relating to rural branches denied - Held that:- In the present case, it is clear that the bank had made a provision insofar as the rural advances which evidenced from the books of accounts itself was ₹ 117, 86, 00, 000/-. The claim for actual write off for the subject assessment year is ₹ 24, 53, 000/-, which is far lesser than the provision. Hence, the proviso definitely becomes applicable and the claim has to be restricted only to such amounts exceeding the provision. In the present case since the provision exceeds the actual written off amounts, there could be no claim raised. FAA and the Tribunal to have correctly disallowed the claim under clause (vii) of Section 36(1) for reason of the provision made under clause (viia) of Section 36(1), relating to the business of rural branches being in excess of the claim for actual write off made for the previous year to the assessment year. Decided in favour of the revenue and against the assessee.
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