TaxTMI 
TaxTMI 
2020 (3) TMI 475
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....y customers and which had become barred by limitation cannot be treated as income of the Respondent Assessee Bank. 2. The relevant findings of the learned Tribunal are quoted below for ready reference. "4. The above ratio was rendered on account of facts of that case where the ITO found that for the assessment years 1982-83 and 1983-84, the assessee had transferred an amount of Rs. 17,381 to the Profit & Loss Account of the Company during the accounting period ended on March 31, 1982 (assessment year 1982-83) and an amount of Rs. 38,975/- during the accounting period ended on March 31, 1983 (assessment year 1983-84). But these amounts were not included in the total income of the assessee. The sums were stated to be credit balances standi....
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....aimable which can be by virtue of multifarious facts available and not by guess work, this cannot be treated as bank's income. There is no such law which can convert such a liability into the income/asset of the assessee-bank after the lapse of particular time lag. The decision of the Hon'ble Supreme Court (cited supra) is, otherwise helpful to the claim of the assessee. The Assessing Officer has not given any clear cut finding as to how the amount has become unclaimable. Hence we set aside the impugned finding and delete the entire addition." 3. The present appeal filed by the Revenue was admitted by a Coordinate Bench of this Court on the following substantial question of law. "Whether on the facts and in the circumstances of t....
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....The relevant extract from the judgment of the Division Bench of the court as contained in para 18 thereof including the extract from the decision of the hon'ble Supreme Court is quoted below for ready reference : "18. A careful perusal of the above provision leads us to infer that section 41(1) can be pressed into service when an allowance or deduction is sought to be made in respect of loss, expenditure or trad ing liability is incurred by the assessee. In the instant case, the sum of Rs. 58,38,581 has remained with the assessee owing to the fact that the payees or holders of the draft/pay orders had not encashed them. The language employed by the Legislature being unambiguous, it would be incongruous to construe the said sum as eith....