Co-op Bank is entitled to get deduction for Depreciation on AFS Investments

ACIT Vs The Karad Urban Co. Op. G Bank Ltd. (ITAT Pune) In the case of ACIT vs. The Karad Urban Co-operative Bank Ltd. (ITAT Pune), the tribunal addressed the issue of whether the cooperative bank could claim a deduction for depreciation on its “Available for Sale” (AFS) securities. The Assessing Officer (AO) had disallowed the claim of ₹34.5 crore under Section 37 of the Income Tax Act for Assessment Year (AY) 2018-19. The AO argued that the provision for depreciation charged to the Profit and Loss Account did not qualify as a deductible expense. However, the Commissioner of Inc...