INDIAN OVERSEAS BANK,CHENNAI vs. DCIT,LTU(2), CHENNAI

ITA 202/CHNY/2023Status: DisposedITAT Chennai31 December 2024AY 2016-1731 pages
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What did the Tribunal hold?

The Tribunal remitted the issue of bad debts deduction to the AO for verification. For the Section 14A disallowance, the Tribunal followed a co-ordinate bench decision and remitted the issue to the AO for fresh consideration. The contribution to the staff welfare fund was decided against the assessee, following previous Tribunal orders.

What were the facts?

The assessee, Indian Overseas Bank, filed its return of income for AY 2015-16. The Assessing Officer made various additions. The assessee appealed to the CIT(A)/NFAC on grounds related to bad debts, disallowance under Section 14A, and contribution to a staff welfare fund.

What were the issues?

Whether the deduction for bad debts is allowable and whether disallowance under Section 14A is applicable when securities are held as stock-in-trade. Also, the allowability of contribution to a staff welfare fund.

Which sections of the Income-tax Act were involved?

Section 36(1)(vii),Section 14A

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Cases cited in this judgment(4)Show list

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2 ITA Nos .661 & 914/19, 202,203/23 others years 2015-16, 2016-2017 and 2017-2018 respectively against different impugned orders by CIT(A)/NFAC as per table below: Appellate order u/s 250 by Assessment Order u/s Asst. Year NFAC / CIT(A)-17 under 143(3) of the Act challenge 31.01.2019 by CIT(A)-17, Chennai. 29.12.2022 by NFAC, Chennai. 29.12.2022 by NFAC, Chennai. 29.12.2017 by ACIT, LTU-2, Chennai. 31.12.2018 by ACIT, LTU-2, Chennai. 23.12.2019 by ACIT, LTU-2, Chennai. 2015-16 2016-17 2017-18

2.

The assessee M/s Indian Overseas Bank is a Scheduled Bank and assessable as a company for the purpose of Income tax. The assessee filed its return of income for AY 2015-16 on 30.11.2015 declaring of Rs.41,13,,18,277/- u/s 115JB of the Act. This case was selected for scrutiny under CASS and notice u/s 143(2) of the Act dated 28.09.2016 was issued. The Id. AO made various additions while passing assessment order. Since tax payable under Normal Method is Rs.6485,40,31,723/- which is more that the tax payable under Book Profit u/s 115JB of Rs.3437,30,42,396/- hence, tax payable under Normal Method is adopted by the AO.

3.

At the outset, the Id. counsel for the assessee filed charts and fairly s

The order continues below.

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