Sec. 36(1)(viii) deduction Not Allowed If

No sec. 36(1)(viii) deduction to co-operative bank as it failed to create special reserve in audited books

[2015] 57 taxmann.com 366 (Pune - Trib.)

IN THE ITAT PUNE BENCH 'A'

Shree Sharada Sahakari Bank Ltd.

v.

Income-tax Officer, Ward 6 (2), Pune

Section 36(1)(viii) of the Income-tax Act, 1961 - Financial corporation, reserve created by (Creation of reserve in books of account) - Assessment year 2009-10 - Whether where, assessee, a co-operative bank, failed to create a special reserve in its books of account out of eligible profits of relevant year, it was not eligible to claim benefit of deduction under section 36(1)(viii) - Held, yes [Paras 12 and 15] [In favour of revenue]