2013 (6) TMI 457

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....ssioner of Income Tax (appeals),is in violation of principle of statute provided under the Act as well as to the order passed by this Hon'ble Tribunal, for the earlier Assessment year on the similar facts of the case.    2. That the Learned Commissioner of Income tax (Appeals) has wrongly interpreted the judgment delivered By Their Lordship of Hon'ble Apex Court while confirming the disallowance made by the Learned Assessing Officer and as such the order passed is without application of judicious mind, arbitrary, and not tenable in law.    3. That the disallowance of the claim of the Appellant against the Provision for Bad and doubtful Debt by the Learned Assessing Officer as well as confirming the same by the Learned ....

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..... CIT(A) by holding that the assessee was not a rural bank denied the assessee the benefit of deduction u/s. 36(1)(viia) of the Act. It was the submission that the order of the Ld. CIT(A) may be reversed and the assessee granted the deduction u/s. 36(1)(viia) to the extent provided under the said section. 5. In reply, the CIT(DR) drew our attention to para 6.1.6 of the order of Ld. CIT(A). It was the submission that as per the Circular No. 258 dated 14.06.1979 reported in 131 ITR (St.) 88, the assessee was not a rural bank and the provisions of section 36(1)(viia) of the Act was introduced to promote rural banking and assist scheduled commercial banks. It was the submission that as the assessee did not comply with the provisions of section....

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....n for leave salary was in respect of the employees' retiring. It was the submission that the assessee had to provide for the said provisions as per the norms of RBI. It was further submitted that the leave salary also as per the co-operative societies Act. It was the submission that the provisions be allowed. 8. In reply, the Ld. DR vehemently supported the order of CIT(A). It was the submission that as per the decision of Hon'ble Supreme Court in the case of Southern Technologies Ltd., reported in 320 ITR 577, the RBI disclosures norms has nothing to do with the computation of taxable income under the Income-tax Act. It was the further submission that the provisions were not an allowable deduction under any of the provisions of the I. T. ....