TaxTMI 
TaxTMI 
2021 (9) TMI 1022
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....y registered under the Maharashtra State Co-operative Society Act and is carrying Banking Business. The assessee declared total income of Rs. 5,21,24,751/- and on scrutiny the AO determined the same at Rs. 6,29,07,859/- inter alia making addition on account of section 14A r.w. Rule 8D, cessation of liability u/s. 41(1) of the Act and excess deduction u/s. 36(i)(viia) of the Act vide its order dated 18-03-2014. The CIT(A) has given partial relief with regard to the additions made by the AO and amongst which aggrieved, the assessee is before us. 3. We note that the ground Nos. 1 and 4 are interlinked, we proceed to hear both the grounds together for the sake of convenience. 4. Heard both the parties and perused the material available on....
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....nt was not debited to profit and loss account. The fact remains undisputed that the said amount is out of taxable profit. Further, the appropriation account is at Page No. 56 of the paper book which clearly shows that the said amount passed through appropriation account and to emergency fund on 27-08-2010. The contention of CIT(A) is that the assessee has not furnished any evidence to show that the amount was not transferred from appropriation account nor explained whether the appropriation account is created. The evidence regarding the appropriation account at Page No. 56 and the Resolution of Board of Directors at Page No. 58 of the paper book were not before the AO and CIT(A). Therefore, we find force in the arguments of the ld. AR and i....
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....see as income in its accounts again remanding the issue to the AO does not arise at all. We find no infirmity in the order of CIT(A). Accordingly, it is justified. 7. Regarding cessation of liability on account of Gratuity of Rs. 4,66,533/- the ld. AR submitted that the said fund does not cease to exist but it is payable out of this funds. On perusal of the impugned order passed by the CIT(A) we notice that there was no documentary evidence in support of claim of assessee to controvert the findings of AO. The ld. AR requested to remand this matter to the file of AO for its fresh adjudication. The ld. DR did not report any objection for remanding this issue to the file of AO. Accordingly, we direct the AO to examine the issue in detail an....
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....ian Bank Ltd. in Civil Appeal No. 9606 of 2011 vide its order dated 09-09-2021 held that when the funds available to the assessee both interest free and interest bearing loans, there shall be a presumption that the investments made would be out of the interest free funds available with the assessee, provided the interest free funds were sufficient to meet the investments which means that when the interest free funds are available to the assessee which were sufficient to meet its investments should be presumed that investments were made out of such interest free funds. In the present case as discussed above, the assessee made investments to an extent of Rs. 9,00,00,000/- and its capital funds of Rs. 18,74,97,548/- which is evident that the i....
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....it and loss account. The CIT(A) in its order, the provision of standard asset cannot be construed against any debt which become doubtful. The contention of ld. AR is that the similar issue is came up before this Tribunal in assessee's own case and the Tribunal considered the submissions of assessee and allowed deduction to the extent provision made under standard assets and drew our attention at Page No. 75 of the paper book. On perusal of the same at Para No. 5, the Co-ordinate Bench of this Tribunal held even though provision under standard assets made and no separate deduction was claimed, the assessee is entitled to claim deduction u/s. 36(1)(vii a) of the Act in respect of different nomenclature was given to the provision made for ....