Co-operative bank ( income tax)

Discussion in 'Tax planning' started by saniya, Apr 3, 2014.

  1. saniya

    saniya Member

    Kindly guide us with any reference or judgement :- >> One co-operative bank in gujarat has invested money in fixed deposit with The Madhupura M. Co-op. Bank Ltd. This bank was defaulted before sometime and the 1st bank get only 10% amount out of total investment. The bank was carring 90% amount in balance sheet upto 2010-11.In the year 2011-12 , RBI has instructed to write off the whole amount. The bank has write off the amount in the following manner >> 50% against free reserves and surplus and accoumulated profit >> 40% was write off against current year's (2011-12) profit. Now whether this 40% adjusted aginst profit is allowable under section 37 or any other section of Income Act ?????

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