Banking Business Allowed: ITAT Confirms Amortization and Standard Asset Provisions are Deductible

South Canara District Central Co-operative Bank Ltd. Vs DCIT (ITAT Bangalore) Banking is a Business, Not a Theory – ITAT Knocks Down Disallowances -Real Income over Notional Income – ITAT Slams Taxation of Unrealised Interest Assessee is a co-operative bank engaged in banking & credit facilities to its members. Assessment involved multiple disallowances by AO, questioning both the accounting methodology & the allowability of key expenditure items. The core issues before Tribunal were: (1) hybrid system of accounting, (2) disallowance of interest income accrual, (3) allowability of ...