State Bank of India wins ruling on pension liability deductions

The Income Tax Appellate Tribunal (ITAT) Mumbai has ruled on several tax matters concerning the State Bank of India (SBI) for the assessment year 2011-12. The Tribunal held that pension liabilities quantified through actuarial valuation constitute ascertained liabilities rather than contingent liabilities, making them allowable deductions.

Additionally, the Tribunal determined that MAT provisions under Section 115JB do not apply to SBI. It also allowed valuation losses on Available-for-Sale (AFS) and Held-for-Trading (HFT) securities. Regarding Section 14A, the Tribunal remitted the issue to the Assessing Officer to recompute disallowances based on investments that actually yielded exempt income, noting that disallowances cannot exceed the exempt income amount.