TMI Blog2020 (11) TMI 743X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 31.3.2010. Said exgratia to employees were actually paid by the assessee bank on 17.8.2009 and hence we hold that the same cannot by any stretch of imagination, could be held as contingent liability - provision for ex-gratia amount was debited to profit and loss account in the earlier assessment year i.e Asst Year 2009-10 and during the Asst Year 2010-11, the said liability account was debited while making the actual payment on 17.8.2009. Hence it could be safely concluded that there was no debit to profit and loss account and consequential claim of deduction during the year under consideration and accordingly, there cannot be any disallowance of any deduction thereon by the ld AO. In any case, we also find that this claim of deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heard the ld. DR and perused the materials available on record. We find that the assessee is a co-operative bank established in 1967 under the Banking Regulation Act, 1949. The return of income as filed on 14.10.2010 declaring total income of ₹ 8,08,92,121/- and assessment was completed u/s 143(3) of the Act on 6.12.2012 accepting the returned income. Later the assessment was reopened by issue of notice u/s 148 of the Act on 31.3.2017. The assessee responded that return already filed may be treated as a return filed in response to notice u/s 148 of the Act. In the re-assessment proceedings, we find that the ld AO had sought to examine the allowability of claim of deduction of exgratia amounting to ₹ 1,62,32,961/- . We find that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as contingent liability. Moreover, we find that the provision for ex-gratia amount was debited to profit and loss account in the earlier assessment year i.e Asst Year 2009-10 and during the Asst Year 2010-11, the said liability account was debited while making the actual payment on 17.8.2009. Hence it could be safely concluded that there was no debit to profit and loss account and consequential claim of deduction during the year under consideration and accordingly, there cannot be any disallowance of any deduction thereon by the ld AO. In any case, we also find that this claim of deduction was upheld by this tribunal for the Asst Year 2007-08 in assessee s own case vide order dated 4.6.2014 which had been subsequently upheld by the Hon ble ..... X X X X Extracts X X X X X X X X Extracts X X X X
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