AO Must Verify Rural Branch Data Before Section 36(1)(viia) Deduction: ITAT Indore

Advertisement ITO Vs Jila Sahkari Kendriya Bank Maryadit (ITAT Indore) The Revenue appealed against the order of the CIT(A) granting partial relief to a co-operative bank in relation to deduction claimed under Section 36(1)(viia) of the Income-tax Act for AY 2015-16. The dispute arose after the assessment was reframed under Section 143(3) read with Section 263, wherein the Assessing Officer (AO) allowed deduction only to the extent of 7.5% of the gross total income amounting to ₹66,10,745 and disallowed the balance claim of ₹3,33,89,255. The AO denied the second component of deduction, ...