https://www.taxtmi.com/caselaws?id=751408 ITAT Chennai decided multiple issues for a banking assessee. The tribunal upheld disallowance of leave encashment provision under Section 43B(f), requiring actual payment. However, it allowed deduction under Section 36(1)(viii) for special reserve created from previous year profits, despite timing of transfer. The tribunal quashed several CIT(A) enhancements on technical grounds for raising new issues not in original assessment. Key allowances included: bad debts written off without adjustment against provisions, leave encashment provision as ascertained liability for MAT computation, 60% depreciation on ATMs as computers, and rural advances computation based on outstanding rather than incremental advances. The tribunal consistently followed its own precedents and HC decisions favoring the assessee on banking-specific issues including stale drafts, ex-gratia payments, and Section 14A disallowance for stock-in-trade securities. en-us Tue, 09 Apr 2024 00:00:00 +0530 Mon, 15 Apr 2024 17:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751408 ITAT Chennai decided multiple issues for a banking assessee. The tribunal upheld disallowance of leave encashment provision under Section 43B(f), requiring actual payment. However, it allowed deduction under Section 36(1)(viii) for special reserve created from previous year profits, despite timing of transfer. The tribunal quashed several CIT(A) enhancements on technical grounds for raising new issues not in original assessment. Key allowances included: bad debts written off without adjustment against provisions, leave encashment provision as ascertained liability for MAT computation, 60% depreciation on ATMs as computers, and rural advances computation based on outstanding rather than incremental advances. The tribunal consistently followed its own precedents and HC decisions favoring the assessee on banking-specific issues including stale drafts, ex-gratia payments, and Section 14A disallowance for stock-in-trade securities. Case-Laws Income Tax Tue, 09 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751408