Allowing the appeal of the assessee the Tribunal held that ; the assessee co -operative bank is entitled to the claim of deduction under section 36(1)(viia) to the extent of 7.5 per cent of total income even in absence of rural branches . The deduction is allowable subject to satisfy the provisions of said section i.e. making a provision to that extent in the books of account. ( Circular No. 464, dt 18-7 1986 (1986) 161 ITR 66 ( St) )( AY. 2007-08, 2009-10, 2011-12, 2012-13)
Bhagini Nivedita Sahakari Bank Ltd v. DCIT (2019) 174 ITD 303 / 176 DTR 329 (Pune) (Trib.)
S. 36(1)(viia) :Bad debt-Provision for bad and doubtful debts – Schedule bank – A co-operative bank is entitled to claim deduction of bad debts provided in first part of S.36(1)(viia)(a) being 7.5 per cent of total income even in absence of rural branches.