Catholic Syrian Bank Ltd. v. CIT

Deputy Commissioner of Income Tax Circle 1(1), Mangaluru vs. Karnataka Bank Ltd., Mangaluru

Bench: Shri George George K. & Shri Laxmi Prasad Sahu

…ural branches are also required to be first debited to PBDD a/c and the excess amount alone can be allowed as deduction u/s 36(1)(vii) of the Act. According to revenue, the decision rendered by Hon'ble Supreme Court in the case of Catholic Syrian Bank (2012)( 343 ITR 270). In the above said case, the Hon'ble Supreme Court has expressed the view that the provisions of sec. 36(1)(vii) and 36(1)(viia) allow separate deduction and they are independent provisions. The Supreme Court further held that the clause (viia)(a) applies only to rural advances. So the bad debts relating to non-rural advances need not be deducte…

Karnataka Bank Ltd, Mangalore vs. Assistant Commissioner of Income Tax, Mangalore

…ural branches are also required to be first debited to PBDD a/c and the excess amount alone can be allowed as deduction u/s 36(1)(vii) of the Act. According to revenue, the decision rendered by Hon'ble Supreme Court in the case of Catholic Syrian Bank (2012)( 343 ITR 270). In the above said case, the Hon'ble Supreme Court has expressed the view that the provisions of sec. 36(1)(vii) and 36(1)(viia) allow separate deduction and they are independent provisions. The Supreme Court further held that the clause (viia)(a) applies only to rural advances. So the bad debts relating to non-rural advances need not be deducte…

Karnataka Bank Ltd, Mangalore vs. Deputy Commissioner of Income Tax, Mangalore

…ural branches are also required to be first debited to PBDD a/c and the excess amount alone can be allowed as deduction u/s 36(1)(vii) of the Act. According to revenue, the decision rendered by Hon'ble Supreme Court in the case of Catholic Syrian Bank (2012)( 343 ITR 270). In the above said case, the Hon'ble Supreme Court has expressed the view that the provisions of sec. 36(1)(vii) and 36(1)(viia) allow separate deduction and they are independent provisions. The Supreme Court further held that the clause (viia)(a) applies only to rural advances. So the bad debts relating to non-rural advances need not be deducte…

Karnataka Bank Ltd, Mangaluru vs. Deputy Commissioner of Income Tax, Mangalore

In the result, appeal of the assessee is partly allowed for statistical purposes

Bench: Shri George George K. & Shri Chandra Poojariassessment Year: 2008-09 Karnataka Bank Ltd. Near Mahaveer Circle Pumpwell Kankanady Vs. Mangaluru Dcit Karnataka 575 002 Mangalore Pan No.Aabct5589K Assessee Respondent Assessee By : Sri Ananthan S. & Smt. Lalitha Rameswaran, A.Rs Revenue By : Ms. Neera Malhotra, D.R. Date Of Hearing : 08.02.2024 Date Of Pronouncement : 08.02.2024 O R D E R Per Chandra Poojari: This Appeal By Assessee Is Directed Against Order Of Nfac For The Assessment Year 2008-09 Dated 27.9.2023. The Assessee Has Raised Following Grounds Of Appeal: “1. The Order Of The Learned Commissioner Of Income Tax (A) Is Bad Is Law & Against The Facts Of The Case. 2. The Learned Commissioner Of Income Tax (A) Erred In Remanding The Issue Back To The Ao For Verification. 2.1. The Learned Commissioner Of Income Tax, Having Observed In His Order That All The Details Required To Comply With The Directions Of Itat Has Been Furnished By The Assessee Bank, Ought Not Have Remanded Back The Issue Again To Ao For Verification, Instead Of Allowing The Appeal In Favor Of The Assessee Bank. 2.2 The Learned Commissioner Of Income Tax (A) Erred In Not Deleting The Disallowance Made By The Learned Assessing Officer.: Karnataka Bank Ltd., Mangaluru Page 2 Of 6 3. The Learned Commissioner Of Income Tax (A) Failed To Appreciate The Fact That The Order Of The Learned Assessing Officer Is Beyond The Directions Given By The Hon'Ble

…as traversed beyond the order of the ITAT. Karnataka Bank Ltd., Mangaluru Page 4 of 6 2.5 He submitted that even on merits, this issue is decided in favour of the Assessee Bank by the Hon'ble Supreme Court in the case of Catholic Syrian Bank Ltd vs CIT [2012] 343 ITR 270 (SC). The Apex Court clearly held that non rural debts need not be adjusted against the provision u/s 36(1)(viia) as no deduction is allowed for non rural debts. Aggrieved by the impugned order, the Assessee preferred an appeal before NFAC on 26/05/2021 on the following grounds: 1. The learned Assessing Officer erred in disallowing the deduction…

Deputy Commissioner of Income-Tax, Circle - 2(1)(1), Bangalore vs. Canara Bank, Bangalore

In the result, appeals filed by assessee and revenue stands partly allowed for statistical purposes

Bench: Chandra Poojari & Smt. Beena Pillai

…bad debt written off should be first adjusted against the credit balance in the Provisions account and only the excess can be claimed as deduction, is also covered in favour of the appellant Bank in the following cases,- i. Catholic Syrian Bank Vs CIT (2012) (343 ITR 270) (SC) ii. Vatika Township Pvt Ltd (2014)(367 ITR 466)(SC) iii. State Bank of Hyderabad (2015) ((8) TMI 836) (Trib.- Hyderabad) iv. IDBI Bank Ltd (2017) ((9) TMI 1289) (Trib.-Mumbai) v. Oriental Bank of Commerce (2017)((11 TMI 1589)(Trib.- Delhi) 7.5 The assessee further submitted that any subsequent recovery made in the loan accounts, which have…

M/S. Canara Bank (Erstwhile Syndicate Bank), Bangalore vs. The Deputy Commissioner of Income Tax, Circle-2(1)(1), Bangalore

In the result, appeals filed by assessee and revenue stands partly allowed for statistical purposes

Bench: Chandra Poojari & Smt. Beena Pillai

…bad debt written off should be first adjusted against the credit balance in the Provisions account and only the excess can be claimed as deduction, is also covered in favour of the appellant Bank in the following cases,- i. Catholic Syrian Bank Vs CIT (2012) (343 ITR 270) (SC) ii. Vatika Township Pvt Ltd (2014)(367 ITR 466)(SC) iii. State Bank of Hyderabad (2015) ((8) TMI 836) (Trib.- Hyderabad) iv. IDBI Bank Ltd (2017) ((9) TMI 1289) (Trib.-Mumbai) v. Oriental Bank of Commerce (2017)((11 TMI 1589)(Trib.- Delhi) 7.5 The assessee further submitted that any subsequent recovery made in the loan accounts, which have…

M/S. Canara Bank (Erstwhile Syndicate Bank), Bangalore vs. The Deputy Commissioner of Income Tax, Circle-2(1)(1), Bangalore

In the result, appeals filed by assessee and revenue stands partly allowed for statistical purposes

Bench: Chandra Poojari & Smt. Beena Pillai

…bad debt written off should be first adjusted against the credit balance in the Provisions account and only the excess can be claimed as deduction, is also covered in favour of the appellant Bank in the following cases,- i. Catholic Syrian Bank Vs CIT (2012) (343 ITR 270) (SC) ii. Vatika Township Pvt Ltd (2014)(367 ITR 466)(SC) iii. State Bank of Hyderabad (2015) ((8) TMI 836) (Trib.- Hyderabad) iv. IDBI Bank Ltd (2017) ((9) TMI 1289) (Trib.-Mumbai) v. Oriental Bank of Commerce (2017)((11 TMI 1589)(Trib.- Delhi) 7.5 The assessee further submitted that any subsequent recovery made in the loan accounts, which have…