INCOME TAX OFFICER, PARWANOO vs. JOGINDRA CENTRAL CO-OPERATIVE BANK LIMITED, NEAR THODO GROUND, SOLAN

ITA 119/CHANDI/2024Status: DisposedITAT Chandigarh14 July 2026AY 2013-146 pages
AI SummaryDismissed

What were the facts?

The assessee, a cooperative bank, claimed deductions for provisions for non-performing assets (NPAs) and accrued interest on NPAs. The Assessing Officer disallowed these claims, alleging excess provisions or non-applicability of certain sections. The Commissioner of Income Tax (Appeals) deleted these additions, finding the assessee's claims to be less than eligible amounts or in line with RBI guidelines and judicial precedents.

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision, finding that the assessee's claims for deduction under Section 36(1)(viia) were less than the eligible amounts. It also affirmed the deletion of additions related to accrued interest on NPAs, following High Court rulings on the retrospective applicability of Section 43D to cooperative banks and the recognition of interest on a receipt basis.

What were the issues?

Whether the assessee was eligible for deductions for provisions made for NPAs and accrued interest on NPAs, and whether Section 43D applied to cooperative banks for taxing interest on NPAs.

Which sections of the Income-tax Act were involved?

Section 36(1)(viia),Section 144,Section 147,Section 43D,Section 80P(2)(c)(ii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, CHANDIGARH

Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

Heard together (3 matters)

ITA No.118/CHANDI/2024
ITA No.119/CHANDI/2024
ITA No.123/CHANDI/2024

Read from the judgment's own cause title. This page is filed under one of them.

Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeals by revenue for Assessment Years (AYs) 2012- 13, 2013-14 & 2014-15 arises out of separate orders of learned first

appellate authority. First, we take up

The order continues below.

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