Tax Appeals: Assessments 2011-2015 Decided in Favor of Assessee

The appeals by the assessee for assessment years 2011-12 to 2014-15 were allowed, while the appeals by the Revenue for assessment years 2011-12 to 2013-14 were dismissed. The appeal by the Revenue for assessment year 2014-15 was partly allowed for statistical purposes. The Tribunal ruled in favor of the assessee on various grounds including disallowance under section 14A and deductions for bad debts written off, special reserves, and rural branches. The applicability of section 115JB to the banking company was also clarified, leading to the dismissal of the Revenue's grounds.

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Issues Involved:
1. Disallowance under section 14A.
2. Deduction of bad debts written off.
3. Deduction under section 36(1)(viii).
4. Deduction under section 36(1)(viia).
5. Applicability of section 115JB.

Detailed Analysis:

1. Disallowance under section 14A:
The assessee, a nationalized bank, earned exempt income from tax-free bonds and dividends held as 'stock-in-trade'. The assessee made a suo-motu disallowance of Rs.9,20,164/- under section 14A, but the Assessing Officer (AO) increased the disallowance to Rs.31,88,11,319/-. The CIT(A) restored the issue to the AO. The Tribunal held that no disallowance under section 14A is warranted for shares/bonds held as 'stock-in-trade' based on the Supreme Court's decision in Maxopp Investment Pvt. Ltd. Consequently, the assessee's appeal was allowed, and the Revenue's corresponding ground was dismissed.

2. Deduction of bad debts written off:
The AO disallowed the bad debts written off, citing section 36(1)(viia). The CIT(A) allowed the deduction, following the Tribunal's decision in the assessee's own case for previous years. The Tribunal upheld the CIT(A)'s decision, noting that the Revenue failed to provide contrary evidence. Thus, the Revenue's ground was dismissed.

3. Deduction under section 36(1)(viii):
The assessee claimed Rs.282 crores for creating a special reserve under section 36(1)(viii), but the AO allowed only Rs.147.52 crores. The CIT(A) restored the issue to the AO, following the Tribunal's previous order. The Tribunal upheld the CIT(A)'s decision, dismissing the Revenue's ground.

4. Deduction under section 36(1)(viia):
The AO added Rs.1,45,08,289/- for recovery of amounts written off for rural branches. The CIT(A) restored the issue to the AO with specific directions to verify certain points. The Tribunal upheld the CIT(A)'s decision, dismissing the Revenue's ground.

5. Applicability of section 115JB:
The CIT(A) held that section 115JB does not apply to the assessee, a banking company. The Tribunal upheld this decision, citing the Bombay High Court's ruling in the assessee's case for previous years, which stated that section 115JB does not apply to banking companies. The Revenue's ground was dismissed.

Separate Judgments for Different Assessment Years:
For assessment years 2011-12 to 2013-14, the Tribunal's decisions were consistent with the above analysis. For assessment year 2014-15, the Tribunal noted the insertion of Explanation-2 to section 36(1)(vii) and remitted the issue of bad debts written off to the AO for fresh adjudication. The other grounds were decided in line with previous years.

Conclusion:
- Appeals by the assessee for assessment years 2011-12 to 2014-15 were allowed.
- Appeals by the Revenue for assessment years 2011-12 to 2013-14 were dismissed.
- Appeal by the Revenue for assessment year 2014-15 was partly allowed for statistical purposes.

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