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

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).

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.

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.

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.

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 :

आदेशानुसार/ BY ORDER

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