Case Law Analysis
|Income Tax Appellate Tribunal
Section 36(1)(viii) & Section 115JB | Banking CSR Expenditure and 60% ATM Depreciation Allowed as Business Deduction, Exempting Book Profit Tax : ITAT Bangalore
The ITAT Bangalore ruled that public sector banks can claim CSR spending and 60% depreciation on ATMs as allowable business expenses under Section 36(1)(viii), thereby excluding them from Section 115JB book profit tax. This sets a critical precedent for the banking sector, affirming that regulatory compliance costs and infrastructure investments essential to modern banking operations qualify as genuine business expenditures, not disallowable non-business outlays.