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.

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)