Deduction Denial Reversed for Failure to Route Provision Through P&L

GS Mahanagar Co-operative Bank Limited Vs DCIT (ITAT Mumbai) The assessee appealed against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre for AY 2007-08, which upheld the Assessing Officer’s (AO) disallowance of a deduction of Rs. 39,24,481 claimed under Section 36(1)(viia) of the Income Tax Act toward provision for bad and doubtful debts. The AO had earlier completed the assessment under Section 143(3), disallowing software expenses and the deduction under Section 36(1)(viia). The assessee challenged this before the CIT(A), and upon dismissal, approac...