Provision for Salary Arrears Held Allowable When Made Pursuant to Court Order: ITAT Guwahati

ACIT Vs Assam Cooperative Apex Bank Ltd (ITAT Guwahati) Provision for Staff Arrears Allowed – ITAT Guwahati Upholds CIT(A)’s Partial Relief to Assam Cooperative Apex Bank Revenue challenged CIT(A)’s order granting partial relief on disallowance of ₹8.41 crore made by AO towards provision for arrears of VDA, PFD (bank contribution), & HRA of employees. AO disallowed the entire amount holding that no actual payment was made & liability had not crystallized. CIT(A) observed that the provision was made pursuant to directions of the Hon’ble High Court, hence the liability was asc...