Bank of baroda

Consumer Cases
1.
A petition was filed on September 15, 1996 before National Commission for Consumer Disputes Redressal by
Akshay Corporation, in relation to non-payment by the Bank under a letter of credit allegedly issued the Bank. The
amount being claimed by the petitioner is Rs. 11,191,500. The Bank has filed a reply stating that the said letter of
credit was issued fraudulently by an employee of the Bank. The said petition is pending.
Tax Cases
1.
The Income Tax Department, in its assessment orders for the assessment year 2003-2004, has disallowed the
following deductions claimed by the Bank:
Club expenses
Deduction claimed under section 35D of the IT Act
Proportionate expenses for earning exempted income
Depreciation on investments

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Bad debts written off under section 36 (1)(vii) of the IT Act
Disbursement made towards various welfare schemes from the staff welfare account
The Bank has filed an appeal on April 12, 2005 before Commissioner of Income Tax (Appeals) II, Mumbai against
the said assessment order. The appeal is still pending and the total disputed amount is Rs. 4037,697,041.
2.
The Income Tax Department, in its assessment orders for the assessment year 2002-2003, has disallowed the
following deductions claimed by the Bank:
Club expenses
Broken period interest on purchase of securities (the same has been allowed subsequently by the order of
the Income Tax Department)
Deduction claimed under section 35D of the IT Act
Proportionate expenses for earning exempted income
Depreciation on investments
Bad debts written off under section 36 (1)(vii) of the IT Act
Disbursement made towards various welfare schemes from the staff welfare account
The Bank has filed an appeal on March 30, 2005 before the Commissioner of Income Tax (Appeal) II, Mumbai
against the said assessment order. The appeal is still pending and the total disputed amount is Rs.2,160,074,589.
3.
The Income Tax Department, in its assessment orders for the assessment year 2001-2002, has rejected the following
deductions claimed by the bank:
Broken period interest on purchase of securities
Club expenses
Preliminary expenses, representing share issue expenses (claimed under section 35D of the IT Act)
Penalties and fine paid to RBI
Depreciation on investments
Bad debt written off under section 36 (1)(vii) of the IT Act
Disbursement made towards various welfare schemes from the staff welfare account.
The Income Tax Department had added the disbursements from the Staff Welfare Account, mentioned above, to
income. The Bank has filed an appeal on April 6, 2004 against the said assessment order. The appeal is still
pending and the total disputed amount is Rs. 7927,142,850.
4.
The Income Tax Department, in its assessment orders for the assessment year 2000-2001, has disallowed the
following deductions claimed by the bank:
Broken period interest on purchase of securities
Club expenses
Preliminary expenses, representing share issue expenses (claimed under section 35D of the IT Act)
Penalties and fine paid to RBI
a)
Depreciation on investments
b)
Provision for depreciation on matured debentures (Indian)
Bad debt written off out of contingency account of foreign branches (i.e. out of provision for bad debts
disallowed in past)
Disbursement made towards various welfare schemes from the staff welfare account
a)
Actual bad debts written off
b)
Prudential bad debts written off

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