TMI Blog2017 (11) TMI 916X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the view of the Delhi High Court in case of Vasisth Chay Vyapar Ltd.(2010 (11) TMI 88 - Delhi High Court). In the said decision, contrary to what was argued before us by the counsel for the Revenue, the Court had not only noticed but also referred to at some length the judgment of the Supreme Court in case of Southern Technologies Limited (2010 (1) TMI 5 - SUPREME COURT OF INDIA).- Decided in favour of the assessee and against the Revenue - Tax Appeal No. 700 of 2017 With Tax Appeal No. 759 of 2016 To Tax Appeal No. 761 of 2016 With Tax Appeal No. 889 of 2012 - - - Dated:- 11-10-2017 - MR. AKIL KURESHI AND MR. BIREN VAISHNAV, JJ. For The Appellant : Mr Pranav G Desai, Advocate For The Opponent : Mr Darshan R Patel, Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les and regulations framed by the Reserve Bank of India ('RBI' for short), as per which, it is mandatory for the bank to follow directives issued by the RBI. During the year under consideration, the bank had made a provision for overdue interest of ₹ 93.03 lakhs against interest accrued but not receivable on non performing assets which were irrecoverable, sticky loans, or doubtful loans. The assessee pointed out that as per the Reserve Bank of India circular dated 22.06.1996, the bank had to follow prudential norms of State Central Cooperative Banks and District Central Cooperative Banks. As per these guidelines, such banks are required to make 100% provision for the entire overdue interests as on 31st March of the year. The b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction under section 36(1)(viia) of the Act in respect of any provision of bad and doubtful debts made by a bank comes with the ceiling of prescribed percentage of the total income computed before making any deduction under chapter VIA. The Commissioner of Income Tax (Appeals) as well as the Tribunal granted deduction ignoring this statutory limitation. Counsel further submitted that the effect of the decision of the Supreme Court in case of Southern Technologies Limited v. Joint CIT reported in 320 ITR 577 was not examined. In the said judgment, the Supreme Court has held that the RBI directives would not govern the taxability a certain receipt. 7. On the other hand, learned advocate Shri Darshan Patel and Shri Bandish Soparkar a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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