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ITA No.267 & CO 41/Kol/2018 A.Y.2013-14 ACIT Cir-24(1), HGY vs. Hooghly Dist. Central Coop Bank Ltd.

Page 2 "3. All the grounds are directed against the action of the AO in disallowing the provision for doubtful debts claimed by the assessee u/s 36(1)(viia). Such deduction @ 7.5% of the average monthly advances is allowable in the respect of the rural branches of the bank. The assessee claimed that its thirteen branches out of sixteen branches were rural branches. The AO was however of the view that the particular area may be a ward of corporation or municipality or panchayat and may not be rural branch having population less than 10000. The AO also observed that from the link http:/censusindia.gov.injpca/pcadataj Houselisting housing-WB html the list of rural branches submitted by the assessee are situated in an area where population was more than 10000. The AO therefore disallowed the provision for doubtful debts.