BHARUCH DISTRICT CENTRAL CO.-OP. BANK LTD.,BHARUCH vs. THE ADDITIONAL COMMISSIONER OF INCOME TAX, BHAURCH RANGE, BHARUCH

ITA 1542/AHD/2016Status: DisposedITAT Surat23 June 2022AY 2009-1053 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the creation of a statutory bad debts reserve by the assessee, as mandated by the Gujarat Cooperative Societies Act, should be considered a provision for bad and doubtful debts for deduction purposes. It also found that the issue of statutory debt reserve was not properly considered in earlier proceedings.

What were the facts?

The assessee, a cooperative bank, claimed deductions for provisions for bad and doubtful debts and diminution of government securities. The Assessing Officer disallowed these claims, arguing that cooperative banks do not qualify for certain deductions applicable to other banks.

What were the issues?

Whether a statutory bad debts reserve created by a cooperative bank under state law qualifies as a deductible provision for bad and doubtful debts under the Income Tax Act, and whether the assessee is eligible for deductions related to rural branches.

Which sections of the Income-tax Act were involved?

Section 36(1)(viia),Section 67A

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Cases cited in this judgment(15)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER ITA No.1529 & 1542/AHD/2016 (AY 2009-10) (Hearing in virtual Court) Assistant Commissioner of Bharuch District Central Income-tax, Circle-1, Co-Op. Bank Ltd. Bharuch, Above Bank of JavaharBhavan, Baroda, Station Road, Opp.Shalimar Cinema, Baruch-392001 Station Road, Bharuch- 392001 PAN No: AAABT 0073 E Vs Bharuch Dist. Central Co-Op. Bank Ltd., JavaharBhavan, Addl. Commissioner of Opp. Shalimar Station Road, Income-tax, Bharuch Bharuch-392001 Range, Bharuch Appellant Respondent

ITA No.1530 & 1543/AHD/2016 (AY 2010-11) Assistant Commissioner of Bharuch District Central Income-tax, Circle-1, Co-Op. Bank Ltd. Bharuch, Above Bank of JavaharBhavan, Baroda, Station Road, Opp.Shalimar Cinema, Baruch-392001 Station Road, Bharuch- 392001 Bharuch District Central Co- Vs Op. Bank Ltd. Addl. Commissioner of JavaharBhavan, Income-tax, Bharuch Opp.Shalimar Cinema, Range, Bharuch Station Road, Bharuch- 392001 Appellant Respondent

ITA No.1531 & 1544/AHD/2016 (AY 2011-12) Assistant Commissioner of Bharuch District Central Income-tax, Circle-1, Co-Op. Bank Lt

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