DEPUTY COMMISSIONER OF INCOME TAX, PUNE vs. M/S. VIDYA SAHAKARI BANK LTD, PUNE

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ITA 399/PUN/2017Status: DisposedITAT Pune08 May 2019AY 2012-133 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the deletion of the addition of accrued interest on NPAs. It relied on previous decisions of the Tribunal and High Court judgments concerning co-operative banks.

What were the facts?

The Assessing Officer made an addition on account of accrued interest on Non-Performing Assets (NPAs) for a co-operative bank. The CIT(A) deleted this addition, following High Court precedents.

What were the issues?

Whether accrued interest on NPAs is taxable in the hands of a co-operative bank when it is not realized.

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE

Before: SHRI R.S. SYAL & SHRI VIKAS AWASTHY

For Appellant: Shri Sharad Shah
For Respondent: Shri Rajesh Gawali
Hearing: 07.05.2019

Heard together (2 matters)

ITA No.399/PUN/2017
ITA No.2032/PUN/2014

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

आदेश / ORDER

PER VIKAS AWASTHY, JM :

This appeal by the Department is directed against the order of Commissioner of Income Tax (Appeals), Pune - 5 dated 10.10.2016 for the A.Y. 2012-13. The solitary issue raised in appeal by the Department is against deleting the addition of interest on Non- Performing Assets (NPAs).

2.

Shri Sharad Shah appearing on behalf of the assessee submitted that assessee is a Co-operative Bank. In scrutiny assessment proceedings for the impugned assessment year, Assessing Officer (AO) made addition on account of accrued interest on NPAs.

ITA No.399/PUN/2017

The assessee carried the issue in appeal before CIT(A). The CIT(A)

following the order of Hon’ble Bombay High Court in the case of CIT

Vs. Nanded Dist. Central Co-operative Bank Ltd., in Income Tax

Appeal No.57/2014 decided on 22.01.2015 deleted the addition. The

ld.A.R. submitted that similar addition was made by the AO in A.Y.

2010-11. In the first appellate proceedings, the CIT(A) deleted the

addition. The Department carried the issue in appeal before the

Tribunal in ITA No.2032/PUN/2014. The Tribunal while deciding

bunch of appeals with identical issue vide order dated 05.02.2016

upheld the findings of CIT(A) in deleting the addition on account of

accrued interest on NPAs and dismissed the appeals of Revenue.

3.

On the other hand, Shri Rajesh Gawali representing the

Department vehemently defended the impugned order and prayed for

reversing the findings of CIT(A). The ld.D.R. to buttress his

submissions placed reliance on the decision of Mumbai Bench of the

Tribunal in the case of GIC Housing Finance Ltd., Vs. ACIT reported

as (2011) 45 SOT 318 / (2011) 140 TTJ 203.

4.

We have heard the submissions made by the representatives on

rival sides and perused the orders of authorities below. The Revenue

in appeal has assailed the findings of CIT(A) in deleting the addition of

accrued interest on NPAs. We find that identical issue had come up

before the Tribunal in assessee’s own case in an appeal by the

Revenue in ITA No.2032/PUN/2014 (supra). The Co-ordinate Bench

of Tribunal while deciding bunch of appeals including that of the

assessee with identical issue held that no addition is warranted in

respect of accrued interest on NPAs. The Tribunal decided the issue

ITA No.399/PUN/2017 in favour of assessee by placing reliance on the judgments rendered

by Hon’ble Bombay High Court in the case of (1) Deogiri Nagari Sahakari Bank Ltd., (Income Tax Appeal No.53 of 2014), (2) Peoples

Co-operative Bank Ltd. (Income Tax Appeal No.57 and 58 of 2014), (3)

Nanded District Central Co-operative Bank Ltd. (supra) and (4)

Vasantadada Nagari Sahakari Bank Ltd (Income Tax Appeal No.68 of 2014) reported as 379 ITR 24. We find no reason to take a contrary

view. Thus, impugned order is justified and warrants no interference.

The appeal of Revenue is dismissed, accordingly.

5.

In the result, the appeal of Revenue is dismissed.

Order pronounced on Wednesday, the 08th day of May, 2019.

Sd/- Sd/- (R.S. SYAL) (VIKAS AWASTHY) VICE PRESIDENT JUDICIAL MEMBER

पुणे Pune; �दनांक Dated : 08th May, 2019. Yamini आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to :

1.

अपीलाथ� / The Appellant 2. ��यथ� / The Respondent 3. CIT(A)-5, Pune. 4. Pr. CIT-4, Pune. 5 �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, “ए” / DR, ITAT, “A” Pune; गाड� फाईल / Guard file. 6.

आदेशानुसार/ BY ORDER

// True Copy // व�र�ठ �नजी स�चव / Sr. Private Secretary आयकर अपील�य अ�धकरण ,पुणे / ITAT, Pune.

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