Dismissing the appeal of the assessee the Court held that ; the Tribunal was justified in confirming he addition of Rs. 1,18,99,651 to the income of the assessee based on the finding that transfer to the reserve fund of the excess provision made for establishment and other expenses in earlier years when the business income of the assessee was totally exempt under section 80P amounted to cessation of those liabilities and therefore, chargeable to tax in the current year be under S.41(1) of the Act. ( AY.2007 -08)
Rajasthan State Co-Operative Bank Ltd. v. ACIT (2019) 410 ITR 434 (Raj)(HC) Editorial: SLP is granted to the assessee , Rajasthan State Co-Operative Bank Ltd. v. ACIT ( 2018) 407 ITR 15 (St)
S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability-Co-Operative bank -Transfer to reserve or provision made in earlier years–Taxable as income. [S. 80P(4)]