- (1.) The Court: Revenue seeks to prefer this appeal from order dated 8th July, 2015 passed by the Income Tax Appellate Tribunal Kolkata, "C" Bench, in ITA nos.846/KOL/2012 and 1745/KOL/2012 respectively pertaining to assessment years 2008-09 and 2009-
(2.) The following questions have been suggested by the Revenue for admission of appeal: "i. Whether on the facts and in the circumstances of the case the Ld. Tribunal has erred in law in allowing deduction under section 36(1)(viia) of the I.T.Act, 1961, for the same advances made for all previous years leading to multiple deductions in every assessment year by misinterpreting the Rule 6ABA of the I.T. Rules, 1962 and also against the ratio of judgment in the case of J.K Synthetics Ltd. vs. UOI, 199 ITR 43 (SC)."? ii. Whether on the facts and in the circumstances of the case conclusion arrived at by the Ld. Tribunal in granting the aforesaid relief to the assessee, is perverse?"
(3.) Relevant facts are that the assessee is a regional rural bank and its main business is banking activity. The assessee claimed deduction for the assessment years under section 36(1)(viia)(a) of the Income Tax Act, 1961 from its total income. The case of the assessee is that it had 71 rural branches. 10 per cent of aggregate monthly average advance under section 36(1)(viia) read with Rule 6ABA of the Income Tax Rules, 1962 came to Rs.22,25,33,875/- for assessment year 2009- 10. The ITO however calculated the sum at Rs.81,88,683 on the basis of aggregate of monthly average advances of Rs.8,18,86,830/- 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.;