DCIT Vs State Bank of India (ITAT Mumbai)
These cross appeals arose from separate orders passed by the Ld. Commissioner of Income Tax (Appeals) against orders of the Assessing Officer giving effect to appellate orders. Since certain issues were common and interconnected, the ITAT Mumbai disposed of the appeals through a consolidated order. The Revenue’s appeal in ITA No.5916/Mum/2017 concerned Assessment Year 2009-10 and raised issues relating to write-back of provisions for employee benefits, interest under section 234D, computation of interest under section 244A and interest under section 244A on excess self-assessment tax. The assessee’s appeal in ITA No.2851/Mum/2019 concerned Assessment Year 2011-12 and challenged interest under section 234D and short grant of interest under section 244A.
For AY 2009-10, the Revenue challenged relief relating to write-back of provisions for leave travel, home travel concession, sick leave and casual leave amounting to Rs.15.47 crore. The assessee submitted that the corresponding provision had been disallowed while computing income for AY 2008-09 and that taxing the subsequent write-back before final determination of the earlier year’s treatment could result in double taxation. The Tribunal found merit in this submission and held that the issue had to be examined in light of the final appellate effect for AY 2008-09. It therefore set aside the order on this issue and restored the matter to the Assessing Officer.
