TMI Blog2015 (7) TMI 1280X X X X Extracts X X X X X X X X Extracts X X X X ..... to take the amount of advances as outstanding at the end of the last day of each month in the previous year di rec ted 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 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 Rules, 1962. - Decided in favour of assessee for statistical purposes. - I.T.A. No. 846/KOL/ 2012, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CIT(Appeal s) while holding that the assessee after amendment of section 36(i)(viia)(a) from the assessment year 2007-08 is entitled to deduction of provision for bad and doubtful debts as under:- (i) 7.5% of the total income computed before ma king a deduction under this Clause and chapter-VI-A of the Income Tax Act and (ii) 10% of aggregate monthly average advances made by the rural branches of such bank computed in the prescribed manner. In respect of deduction under Sl. (ii) above, CIT(Appeals) has incorrectly directed the Assessing Officer that the aggregate average balance of advances made by the rural branches has to be calculated considering the loans and advances made during the year in the prescribed manner as envisaged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rately. The CIT(Appeal s) instead of giving the direction 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 di rec ted 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 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 Rules, 1962. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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