M/s. Karur Vysya Bank v. Deputy Commissioner of Income Tax

Parties Involved

Facts Summary

The appellant, M/s. Karur Vysya Bank, a private sector bank, filed its Return of Income for the Assessment Year 2017-18 on 29/10/2017, admitting an income of Rs.1046,46,95,070/- and book profit of Rs.1121,72,59,031/-. The case was selected for scrutiny, and the assessment was completed on 01/03/2019. The Assessing Officer made several additions and disallowances, determining the income under regular provisions at Rs.1262,32,55,760/- and deemed income under section 115JB at Rs.1121,72,59,031/-. The assessee challenged the assessment order before the Commissioner of Income Tax (Appeals), who partly enhanced the total income and sustained certain additions. Both the assessee and the revenue appealed to the ITAT.…

Legal Issues

• 1. Disallowance on equity shares – restructured
• 2. Disallowance of Depreciation on Security Receipts (SRs)
• 3. Deduction u/s.36(1)(vii) of the Act, in respect of bad debts actually written off
• 4. Taxability of recovery from written off accounts u/s 41(4)
• 5. Deduction towards education cess and secondary and higher education cess
• 6. Deletion of disallowance of expenditure relatable to exempt income u/s. 14A of the Act

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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