Allowing the appeal of the revenue the Tribunal held that; Provision for standard asset being required only to meet the unexpected eventuality is purely contingent in nature and hence is not allowable as a deduction. followed Chaitanya Godavari Grammena Bank (ITA No. 326, 327/2016). (AY. 2013-14 2014-15)
ACIT v. Guntur District Co-operative Bank Ltd (2018) 66 ITR 61 (SN) (Vishakha) (Trib.)
S. 37 (1) : Business expenditure-Provision for standard asset being required only to meet the unexpected eventuality is purely contingent in nature and hence is not allowable as a deduction.