ZILA SAHKARI BANK LTD,MIRZAPUR vs. JT. C.I.T., MIRZAPUR

ITA 136/ALLD/2015Status: DisposedITAT Allahabad30 September 2021AY 2011-1239 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the eligibility for deduction under Section 36(1)(viia) for cooperative banks requires a banking license from the RBI, and the retrospective effect of such a license needs to be examined. The matter was remanded to the AO for fresh adjudication on this issue and to verify details for the second limb of the deduction.

What were the facts?

The assessee, Zila Sahkari Bank Limited, claimed deductions for provision for bad debts and depreciation. The Assessing Officer (AO) allowed only a partial deduction for bad debts under Section 36(1)(viia) and adjusted depreciation claims. The CIT(A) upheld these disallowances.

What were the issues?

Whether the assessee cooperative bank is eligible for deduction under Section 36(1)(viia) without a banking license during the relevant period, and the applicability of retrospective licensing. The calculation and eligibility for depreciation claims were also contested.

Which sections of the Income-tax Act were involved?

Section 36(1)(viia),Section 32

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, ALLAHABAD BENCH, ALLAHABAD

Before: SHRIVIJAY PAL RAO & SHRI RAMIT KOCHAR

Hearing: 11.08.2021

PER SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER:

These two appeals, filed by assessee, being ITA No.135/Alld./2015 and 136/Alld/2015 for assessment year(s): 2010-11 and 2011-12 respectively , are directed against two separate appellate order(s) dated 16.12.2014 and 17.12.2014in Appeal No(s).110/ACIT/R-III/MZP/13-14and 124/JCIT/R- III/MZP/13-14 passed by learnedCommissioner of Income Tax (Appeals), Allahabad (hereinafter called "theCIT(A)"),for assessment years(ay):2010-11 and 1 And ITA No. 136/ALLD/2015 ZilaSahkari Bank Limited Assessment Year: 2010-11 and 2011-12 2011-12respectively, the appellate proceedingshad a

The order continues below.

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