THE ASSTT. COMMISSIONER OF INCOME TAX CIRCLE - III, JALANDHAR vs. M/S THE CITIZEN URBAN CO-OP. BANK LTD., JALANDHAR

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI N.K. CHOUDHRY, JUDICIAL MEMBER

ITA No.379/ASR/2017 Assessment Year : 2014-15 The ACIT, Vs. M/s The Citizen Urban Co-op Bank Circle-III, Ltd., Jalandhar. Civil Lines, Jalandhar. PAN: AAAAT6369E (Appellants) (Respondents)

Assessee By : Shri J.S. Bhasin, Advocate Department By : Shri S.S. Negi

Date of Hearing : 19.02.2018 Date of Pronouncement : 20.02.2018

ORDER PER R.S. SYAL, VP: This appeal filed by the Revenue is directed against the order passed by the CIT(A) on 23.03.2017 in relation to the Assessment Year 2010-11.

ITA No.379/ASR/2017

1(a). Whether on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law in deleting the addition of Rs.2,66,73,141/- made by the AO on account of treating interest due to Non Performing Assets as Income of the year as the assessee was following mercantile system of accounting.

1(b). Whether on the facts and in the circumstances of the case, the Ld.C1T(A) has erred in law in granting relief of interest on Non Performing Assets by relying on the contention of the assessee that it was following Mercantile System of accounting except for interest on Non Performing Assets, for which the assessee had followed guidelines issued by the RBI, which is in violation to the provision of section 145(1) of the Income Tax Act, 1961.

1(c) Whether on the facts and in the circumstances of the case, that the Ld. CIT(A) has erred in law in following the decision of Hon'ble Delhi Pligh Court in case of M/s Vasisth Chay Vyapar Ltd. (dated 29.11.2010).

Whether on the facts and in the circumstances of the case, the Ld. 2. CIT(A) has erred in law in deleting the addition of Rs.89,93,195/- made by AO on account of disallowance of Broken Period Interest debited by the assessee.

It is prayed that the order of the Ld. Commissioner of Income 3. Tax (Appeals) be set aside and that of the Assessing Officer be restored.

The appellant requests for leave to add or amend or alter the 4. grounds of appeal before the appeal is heard and disposed off.

ITA No.379/ASR/2017

record. It is observed that similar issues were raised in the assessee’s

own appeal for the Assessment Years 2012-13 and 2013-14. Vide its

order dated 27.03.2017, the Tribunal in ITA Nos.416 & 417/Asr/2016,

has decided both the issues in the assessee’s favour. Since the facts and circumstances of the instant appeal are, mutatis mutandis, similar to

those already considered and decided by the Tribunal, respectfully

following the precedent, we uphold the impugned order.

The order pronounced in the open court on 20.02.2018.

Sd/- Sd/-

[N.K. CHOUDHRY] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT

Dated, 20th February, 2018. dk

ITA No.379/ASR/2017