TMI Blog2018 (5) TMI 903X X X X Extracts X X X X X X X X Extracts X X X X ..... aggregate average advance, computation of which is prescribed by Rule 6ABA. We find from the amended direction made by the Tribunal that such direction is in terms of Rule 6ABA. The ITO had made the computation of aggregate monthly advances taking loans and advances made during only the previous year relevant to assessment year 2009-10 as confirmed by CIT(A). The Tribunal amended such direction, in our view, correctly applying the rule. No substantial questions of law - G.A No. 291 of 2016 ITAT No. 76 of 2016 - - - Dated:- 7-5-2018 - Aniruddha Bose And Arindam Sinha, JJ. Mr. Nizamuddin, Adv. for the Revenue Mr. Khaitan learned Sr. Adv. for the Assessee ORDER The Court: Revenue seeks to prefer this appeal from order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8,86,830/- being the sum total of advances made during the financial year relevant to assessment year 2009-10. For assessment year 2008-09 the issue in this regard was whether the assessee could make provision for bad debts on its advances. The assessee being aggrieved preferred appeal before CIT(A). The Appellate Authority confirmed the action of the ITO by saying as follows: I have carefully considered the submission of the Ld. AR and also perused the assessment order. After amendment of section 36(1)(viia), from the AY 2007-08, the assessee bank is now entitled to deduction of provision for bad debt and doubtful debt as under: i) 7.5% of the total income computed before making a deduction under this Clause and chapter VI-A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irection to the Assessing Officer to take the amount of advances as outstanding at the end of the last day of each month in the previous year directed the Assessing Officer to take loans and advances made during the year only, we therefore, set aside the order of CIT(Appeals) on this issue and amend the direction of the CIT(Appeals) and direct the Assessing Officer to compute 10% of the aggregate monthly average advances made by the rural branch of such Bank by taking the amount of advances by each rural branch of such Bank by taking the amount of advances by each rural branch as outstanding at the end of the last day of each month comprised in the previous year and aggregate the same separately as given under Rule 6ABA of the Income Tax Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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