Assessment of Banks - Allowance of deduction to rural branches

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..... bank (not being a bank incorporated by or under the laws of a foreign country) or a non-scheduled bank or a cooperate bank other than a primary agricultural credit society or a primary co-operative agricultural and rural bank is entitled to claim deduction of provision for bad debt of an amount not exceeding ten per-cent of the aggregate average advances made by the rural branches of such bank com .....

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..... ssessing Officers should, therefore, ensure that the claims of deduction towards advances given by rural branches of banks are allowed only after verifying (at least by way of test check) as to whether such branches are eligible to be treated as a 'rural branch' according to the definition given in Explanation (ia) to section 36( 1 )( viia ) of the Income-tax Act, 1961 . 5. A review of comp .....

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