controversy in the cases. Annexure-C produced in I.T.A.No.361 of 2009 is the assessment order for the year 1993-94. Therein, the assessee had made a claim for Rs.2,18,56,250/as “amount written off by way of provision in the Profit and loss account in respect of advances considered as irrecoverable”. The assessee also relied on the judgment of the Gujarat High Court in Vithaldas H.Dhanjibhai Bardanwala v . C.I.T. [ (1981) 130 ITR 95 (Guj.) ]. The Assessing Officer [for brevity “AO”] found that the same is not applicable to Banks. The AO also found that in the financial year 1993-94, which is the previous year of the assessment year 1994-95, an amount of Rs.8,97,66,930/- was claimed as written off. This sum was found to include an amount of Rs.2,04,60,000/- out of the provision of Rs.2,18,56,250/- claimed for the assessment year 1992-93. Holding that the written off value will be considered for deduction in the assessment year 1994-95, the claim raised for the assessment year 1993-94 was not considered. We notice that even if a major portion of the claim raised for that year was found to be included in the written off amounts for the next year, there remained an amount of Rs.13,96,250/-, which was claimed as written off for the said year. We will deal with it a little later.
