TMI Blog2015 (8) TMI 1294X X X X Extracts X X X X X X X X Extracts X X X X ..... ovision for bad and doubtful debts in its books of account in terms with section 36(1)(viia). In case it is found that assessee has made a provision for bad and doubtful debts in its books of account, then, deduction u/s 36(1)(viia) can be allowed to assessee. In case it is found that assessee has not made any provision for bad and doubtful debts in its books of account, then, assessee would not be eligible for any deduction u/s 36(1)(viia) in view of the ratio laid down by the Hon’ble P&H High Court in case of State Bank of Patiala Vs. CIT (2004 (5) TMI 12 - PUNJAB AND HARYANA High Court ). With the aforesaid observations, we remit the issue back to the file of AO for deciding afresh - Decided in favour of revenue for statistical purposes. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declaring total income of ₹ 103,23,92,640. Subsequently, as claimed by assessee, it filed a revised return of income in terms with section 139(5) of the Act claiming deduction u/s 36(1)(viia). AO, however, completed the assessment u/s 143(3) of the Act ignoring the revised return. Assessee, therefore, filed a petition u/s 154 of the Act seeking rectification of the assessment order for having not considered the revised return. AO, however, dismissed the petition filed by assessee vide order dated 13/01/2012 stating therein that assessee s revised return was not available on record at the time of completion of the original assessment. Further, he also observed that as assessee has not debited the provision for bad and doubtful debts to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng deduction u/s 36(1)(viia) is not acceptable. The Hon ble P H High Court in case of State Bank of Patiala Vs. CIT (supra) while examining the provisions of section 36(1)(viia) held that for claiming deduction under the said provision, assessee bank has to make a provision for bad and doubtful debts in its books of account and deduction u/s 36(1)(viia) in respect of rural advances can only be allowed to the extent of the provision made. The coordinate bench in assessee s own case for AY 2010-11 in ITA No. 51/Hyd/2015 dated 10/04/2015, while dealing with identical issue, has held as under: It is observed that the assessee in the present case, being eligible bank, is entitled to claim deduction as per the main provision contained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d proper and in the interests of justice to restore the issue relating to the assessee s claim for deduction under S.36(1)(viia) to the file of the Assessing Officer for deciding the same afresh, in accordance with the provision of S.36(1)(viia) after giving proper and sufficient opportunity of hearing to the assessee and after verifying all the relevant facts and figures. We order accordingly. This appeal of the Revenue is accordingly treated as allowed for statistical purposes. Keeping in view of the aforesaid order of the coordinate bench, we are inclined to remit the matter back to the file of AO for deciding afresh after verifying the fact whether assessee has created any provision for bad and doubtful debts in its books of acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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