Provision made by Bank for Interest on Overdue Deposits is allowable expense

Oriental Bank of Commerce Vs. Additional CIT (Delhi High Court) The assessee – a scheduled bank had in its return claimed an ascertained liability of Rs. 17 crores towards the interest on overdue deposits. The AO was of the opinion that the liability was not in present time and had not crystallized or arisen and therefore, had to be disallowed. In this case, there can be no doubt that the assessee/bank was not only aware of its liability on the particular aspect, but, in fact, was able to crystallize it and set it out expeditiously in its returns. The possibility of likelihood of the de...