ACIT, NON-CORPORATE CIRLE-8, CHENNAI vs. INDIAN OVERSEAS BANK, CHENNAI

ITA 253/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 back to the AO for verification. For the disallowance under Section 14A, the issue was remitted to the AO for fresh consideration, following previous orders. The contribution to the staff welfare fund was disallowed, following prior decisions against the assessee.

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 including deduction for bad debts, disallowance under Section 14A, and contribution to a staff welfare fund.

What were the issues?

Whether the assessee is eligible for deduction of bad debts written off and whether disallowance under Section 14A is applicable when securities are held as stock-in-trade. The allowability of contribution to a staff welfare fund was also examined.

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 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 f

The order continues below.

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