M/s. State Bank of Travancore vs. The ACIT, Circle-1(1)

Parties Involved

Facts Summary

The case involves two appeals by M/s. State Bank of Travancore against orders of the Commissioner of Income Tax (Appeals) in assessment years 2002-2003 and 2010-2011. The assessee argues that the disallowance of deductions under sections 36(1)(viia) and 36(1)(viii) of the Income Tax Act, 1961, was erroneous. The respondent, the ACIT, argues that the disallowance was correct as the assessee did not make any provision for bad and doubtful debts and the method of accounting for eligible business was arbitrary. The tribunal found merit in the assessee's arguments and directed the Assessing Officer to re-decide the issue.…

Legal Issues

• 1. Disallowance of deduction under section 36(1)(viia)
• 2. Disallowance of deduction under section 36(1)(viii)

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Dhani Loans & Services Ltd. vs ACIT

  Delhi 'B' Bench benchAY 2021-22Allowed

• DCIT vs. The Citizens Co-operative Bank Ltd.

  Rajkot bench

• DCIT NON CIRCLE II MADURAI VS VIRUDHUNAGAR DISTRICT CENTRAL CO-OPERATIVE BANK LIMITED

• Asstt. Commissioner of Income Tax v/s Chandrapur District Central Co-operative Bank

  Nagpur bench

• Assistant Commissioner of Income Tax, Circle-2(1)(1), Vadodara Vs. The Bharuch Dist. Central Co-op. Bank Ltd.

  Ahmedabad bench

• The JCIT V/s India Infrastructure Finance

  Delhi ‘E’ Bench benchAY 2017-18Dismissed