THE MODAS NAGARIK SAHAKARI BANK LTD.,ARVALLI vs. THE ACIT, CIRCLE-2(1)(1), AHMEDABAD
Facts
The assessee, a cooperative bank, appealed against the CIT(A)'s confirmation of two disallowances for AY 2018-19. The first was for expenses of Rs. 53,62,300, not debited to the P&L account but deducted from reserves. The second was an addition of Rs. 27,42,118 for provision for doubtful debts, which the assessee claimed was duly made and allowable under the Income Tax Act.
Held
For both grounds of appeal, the Tribunal remanded the matter to the Assessing Officer (AO). The AO was directed to verify the assessee's separate accounts/computation and the DR's contention regarding the expenses. For the bad debts provision, the AO was directed to verify the claim and allow it if the assessee is entitled under Section 36(1)(viia) of the Act.
Key Issues
Whether expenses not debited to the P&L account but adjusted against reserves are allowable deductions; Whether provision for doubtful debts is allowable under Section 36(1)(viia) when the assessee claims it was duly made in books of accounts.
Sections Cited
Section 250, Section 36(1)(viia), Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “ C ” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Annapurna Gupta
आदेश की "ितिलिप अ#ेिषत/Copy of the Order forwarded to : 1. अपीलाथ$ / The Appellant 2. "%थ$ / The Respondent. 3. संबंिधत आयकर आयु& / Concerned CIT आयकर आयु& अपील 4. ( ) / The CIT(A)- (NFAC), Delhi 5. िवभागीय "ितिनिध आयकर अपीलीय अिधकरण अहमदाबाद/DR,ITAT, Ahmedabad. , , 6. गाड� फाईल / Guard file.
आदेशानुसार/ BY ORDER, स%ािपत "ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad
Date of dictation (dictation pad is attached with file) : 1. 21.1.2026 : 2. Date on which the typed draft is placed before the 23.1.2026 Dictating Member. Date on which the approved draft comes to the Sr.P.S./P.S : 3. : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 28.1.26 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 28.1.26 7. Date on which the file goes to the Bench Clerk. : 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order