ITAT Allows Deduction for NPS Bad Debts Declared Pre-01.04.2006 by Co-op Bank

ACIT Vs Abhyudaya Co-op Bank Limited (ITAT Mumbai) The ITAT Mumbai has ruled in favor of Abhyudaya Co-op Bank Limited in an appeal filed by the Revenue. The case involved the allowance of bad debts declared as Non Performing Assets (NPS) before 01.04.2006 as a deduction under section 36(1)(vii) of the Income Tax Act for the assessment year 2012-13. The Revenue challenged the deduction claimed by the assessee for bad debts under section 36(1)(vii), arguing that the provisions of section 36(1)(viia) should apply. However, the ITAT Mumbai relied on previous decisions, including the one in City Co...