Deduction for staff ex-gratia & benefit cannot be denied merely for showing under appropriation of fund

Himatnagar Nagrik Sahakari Bank Ltd. Vs ACIT (ITAT Ahmedabad) Introduction: The recent case of Himatnagar Nagrik Sahakari Bank Ltd. vs. ACIT, decided by the ITAT Ahmedabad, revolves around the denial of deduction for staff ex-gratia and benefits under section 43B of the Income Tax Act. The Assessee challenged the disallowance made by the Commissioner of Income Tax (Appeals), asserting that the expenses were paid during the year and should be allowed as per section 43B. Background: The Assessee, a cooperative bank, claimed deductions for staff-related expenses without debiting the same in the...