DCIT, CIRCLE 1(3)(1), MUMBAI vs. NKGSB CO-OPERATIVE BANK LIMITED, MUMBAI

ITA 7552/MUM/2025Status: DisposedITAT Mumbai15 May 2026AY 2016-1718 pages
AI SummaryPartly Allowed

What were the facts?

The Revenue appealed against the CIT(A)'s deletion of disallowances related to bad debts and other expenses. The assessee, a co-operative bank, had claimed deductions for bad debts written off and other expenses.

What did the Tribunal hold?

The Tribunal found that the CIT(A) had erred in deleting the bad debt disallowance without appreciating the amendments to Section 36(1)(vii). The Tribunal also remanded issues concerning staff welfare expenses and long-term capital gains for fresh consideration by the AO.

What were the issues?

Whether the disallowance of bad debts written off was correctly deleted by the CIT(A) considering amendments to the Income Tax Act. Whether certain expenses and capital gains were correctly treated by the AO and CIT(A).

Which sections of the Income-tax Act were involved?

Section 36(1)(vii),Section 36(1)(viia),Section 36(2)(v),Section 14A,Section 37,Section 45,Section 271(1)(c),Section 270A

AI-generated summary — verify with the full judgment below

Before: SHRI AMIT SHUKLA & SHRI PRABHASH SHANKAR

For Appellant: Shri Brijmohan Agarwal & Shri Rajesh Agarwal,ARs
For Respondent: Shri Ganesh Sudhakar Bare (CIT DR)
Hearing: 11.05.2026Pronounced: 15.05.2026

PER PRABHASH SHANKAR [A.M.] :- The above captioned appeals have been preferred by the Revenue against the orders of even date passed by the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre, Delhi

P a g e | 2 ITA No. 7552, 7591 & 7592/Mum/2025 A.Y. 2016-17, 2017-18 & 2020-21 NKGSB Cooperative Bank Limited [hereinafter referred to as “CIT(A)”] pertaining to the assessment orders passed u/s. 143(3) of the Income-tax Act, 1961 [hereinafter referred to as

The order continues below.

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