Applicability of provisions u/s section 36(1)(vii) of the Income Tax Act

Last updated: 28 August 2021
Quick Summary
The Income Tax Appellate Tribunal (ITAT) Ahmedabad ruled that a cooperative bank's loss from deposits with a sick bank (MMC Bank) written off is eligible for deduction. The Revenue argued that Section 36(1)(vii) was not applicable as the transaction was an investment and not part of the regular course of business. However, the Tribunal followed previous decisions, confirming that parking surplus funds in scheduled banks, as per RBI guidelines, is a normal banking activity.

Court :
ITAT Ahmedabad

Brief :
Revenue is in appeal before the Tribunal against order of the ld.CIT(A)-10, Ahmedabad dated 19.3.2019 passed for Asstt.Year 2014- 15.

Citation :
ITA No.895/Ahd/2019

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Poojitha Raam Vinay
Published in Income Tax
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Attached File : 1442821_4285_21.pdf
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