KBC Bank Naamloze Vennootschap Vs ACIT (ITAT Mumbai)
The Income Tax Appellate Tribunal (ITAT), Mumbai, heard the assessee’s appeal against the assessment order passed under Sections 147 read with 144C(13) of the Income-tax Act, 1961 for AY 2016-17. Although the assessee had challenged the validity of reassessment proceedings under Section 148, those grounds were not pressed and the appeal was argued on merits.
Material Facts: The Assessing Officer made additions of Rs. 3.14 crore towards reversal of general provision for standard assets under the normal provisions and while computing book profit under Section 115JB. An addition of Rs. 1,04,42,250 relating to forfeiture of security deposit was also made while computing book profit under Section 115JB. The assessee further disputed short grant of TDS credit, incorrect refund computation, interest under Sections 234B and 234C, and initiation of penalty proceedings.
Assessee’s Submissions: The assessee submitted that the provision for standard assets had never been claimed as a deduction in earlier years. The write-back was credited to the profit and loss account as a negative expense, thereby increasing income, and was correspondingly reduced while computing taxable income. It also submitted that the provision for forfeiture of security deposit had already been suo motu added back while computing book profit under Section 115JB, making the Assessing Officer’s addition a duplication. The assessee requested verification of TDS credit and refund figures.
