Banque Nationale De Paris v. CIT

237 ITR 518High Court1999#3400 most cited

What is Banque Nationale De Paris v. CIT authority for?

Where an assessee follows the mercantile system of accounting, interest income accrued on sticky loans is taxable even if the loans have not become bad and there is a hope of recovery.

35

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2016 to 2026.

Also referred to as

Banque Nationale De Paris · interest on sticky loans · mercantile system of accounting · accrued interest · taxable income · bad loans · hope of recovery · Bombay High Court · income tax

Sections most often in play

Section 14ASection 244ASection 36(1)(vii)Section 36(1)(viia)Section 40(a)(ia)Section 43BSection 80-IA

Judgments citing Banque Nationale De Paris v. CIT

ASST CIT 2(2)(1), MUMBAI vs. STATE BANK OF INDIA, MUMBAI

In the result appeal filed by the assessee as well as revenue stands partly allowed for statistical purposes

ITA 3882/MUM/2017[2010-11]Status: DisposedITAT Mumbai21 Apr 2026AY 2010-11

Bench: Smt. Beena Pillai () & Shri Jagadish ()

Section 14ASection 36(1)Section 36(1)(vii)Section 36(1)(viia)Section 43B

…ictional High Court of Bombay in the following cases clearly held that interest income on securities cannot be considered as business income of a bank: (i) CIT vs. Banque National de Paris (1999) 237 ITR 278 (Bom.) (ii) Banque National de Paris vs. CIT (1999) 237 ITR 518 (Bom.) (iii) Mercantile Bank Ltd. Vs. CIT (2001) 252 ITR 225 (Bom.) 5.14 In this connection it is necessary to go into the background of the issue. Prior to 01.04.1989, the income from securities was assessable under the head ‘Interest on Securities’ [Clause B of Section 14 of the Income Tax Act]. This head of income was omitted w.e.f.01.04.1989…

STATE BANK OF INDIA,MUMBAI vs. ASST CIT CIR 2(2), MUMBAI

In the result appeal filed by the assessee as well as revenue stands partly allowed for statistical purposes

ITA 3680/MUM/2017[2010-11]Status: DisposedITAT Mumbai21 Apr 2026AY 2010-11

Bench: Smt. Beena Pillai () & Shri Jagadish ()

Section 14ASection 36(1)Section 36(1)(vii)Section 36(1)(viia)Section 43B

…ictional High Court of Bombay in the following cases clearly held that interest income on securities cannot be considered as business income of a bank: (i) CIT vs. Banque National de Paris (1999) 237 ITR 278 (Bom.) (ii) Banque National de Paris vs. CIT (1999) 237 ITR 518 (Bom.) (iii) Mercantile Bank Ltd. Vs. CIT (2001) 252 ITR 225 (Bom.) 5.14 In this connection it is necessary to go into the background of the issue. Prior to 01.04.1989, the income from securities was assessable under the head ‘Interest on Securities’ [Clause B of Section 14 of the Income Tax Act]. This head of income was omitted w.e.f.01.04.1989…

THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3, GUWAHATI vs. M/S. NUMALIGARH REFINERY LTD., GUWAHATI

In the result, appeals of the assessee in I

ITA 278/GTY/2018[2015-16]Status: DisposedITAT Guwahati13 Sept 2019AY 2015-16

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…e used to curtail or modify the clear meaning of an expression used in the Statute. Thus, a Circular cannot override the provision of law. For that we rely on the judgment of the Hon`ble Bombay High Court in the case of BanqueNationale de Paris Vs. CIT (1999) 237 ITR 518 (Bom). 18. Further, our view is fortified by the recent Judgment of the Coordinate Bench of Guwahati in the case of ACIT Vs.Oil India Ltd, in ITA No.120 to 123/Gau/2008, for A.Y.2003-04 to 2006-07, order dated 28.08.2019, wherein, on identical facts, it was held as follows: “23. We further notice after a deeper scrutiny that the assessee’s main…

DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 03, GUWAHATI vs. NUMALIGARH REFINERY LIMITED, GUWAHATI

In the result, appeals of the assessee in I

ITA 28/GTY/2017[2013-14]Status: DisposedITAT Guwahati13 Sept 2019AY 2013-14

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…e used to curtail or modify the clear meaning of an expression used in the Statute. Thus, a Circular cannot override the provision of law. For that we rely on the judgment of the Hon`ble Bombay High Court in the case of BanqueNationale de Paris Vs. CIT (1999) 237 ITR 518 (Bom). 18. Further, our view is fortified by the recent Judgment of the Coordinate Bench of Guwahati in the case of ACIT Vs.Oil India Ltd, in ITA No.120 to 123/Gau/2008, for A.Y.2003-04 to 2006-07, order dated 28.08.2019, wherein, on identical facts, it was held as follows: “23. We further notice after a deeper scrutiny that the assessee’s main…

NUMALIGARH REFINERY LIMITED,GUWAHATI vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 03, GUWAHATI

In the result, appeals of the assessee in I

ITA 27/GTY/2017[2013-14]Status: DisposedITAT Guwahati13 Sept 2019AY 2013-14

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…e used to curtail or modify the clear meaning of an expression used in the Statute. Thus, a Circular cannot override the provision of law. For that we rely on the judgment of the Hon`ble Bombay High Court in the case of BanqueNationale de Paris Vs. CIT (1999) 237 ITR 518 (Bom). 18. Further, our view is fortified by the recent Judgment of the Coordinate Bench of Guwahati in the case of ACIT Vs.Oil India Ltd, in ITA No.120 to 123/Gau/2008, for A.Y.2003-04 to 2006-07, order dated 28.08.2019, wherein, on identical facts, it was held as follows: “23. We further notice after a deeper scrutiny that the assessee’s main…

THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3, GUWAHATI vs. M/S. NUMALIGARH REFINERY LTD., GUWAHATI

In the result, appeals of the assessee in I

ITA 98/GTY/2016[2012-13]Status: DisposedITAT Guwahati13 Sept 2019AY 2012-13

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…e used to curtail or modify the clear meaning of an expression used in the Statute. Thus, a Circular cannot override the provision of law. For that we rely on the judgment of the Hon`ble Bombay High Court in the case of BanqueNationale de Paris Vs. CIT (1999) 237 ITR 518 (Bom). 18. Further, our view is fortified by the recent Judgment of the Coordinate Bench of Guwahati in the case of ACIT Vs.Oil India Ltd, in ITA No.120 to 123/Gau/2008, for A.Y.2003-04 to 2006-07, order dated 28.08.2019, wherein, on identical facts, it was held as follows: “23. We further notice after a deeper scrutiny that the assessee’s main…

THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3, GUWAHATI vs. M/S. NUMALIGARH REFINERY LTD., GUWAHATI

In the result, appeals of the assessee in I

ITA 97/GTY/2016[2011-12]Status: DisposedITAT Guwahati13 Sept 2019AY 2011-12

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…e used to curtail or modify the clear meaning of an expression used in the Statute. Thus, a Circular cannot override the provision of law. For that we rely on the judgment of the Hon`ble Bombay High Court in the case of BanqueNationale de Paris Vs. CIT (1999) 237 ITR 518 (Bom). 18. Further, our view is fortified by the recent Judgment of the Coordinate Bench of Guwahati in the case of ACIT Vs.Oil India Ltd, in ITA No.120 to 123/Gau/2008, for A.Y.2003-04 to 2006-07, order dated 28.08.2019, wherein, on identical facts, it was held as follows: “23. We further notice after a deeper scrutiny that the assessee’s main…

M/S. NUMALIGARH REFINERY LTD.,GUWAHATI vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3, GUWAHATI

In the result, appeals of the assessee in I

ITA 90/GTY/2016[2012-13]Status: DisposedITAT Guwahati13 Sept 2019AY 2012-13

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…e used to curtail or modify the clear meaning of an expression used in the Statute. Thus, a Circular cannot override the provision of law. For that we rely on the judgment of the Hon`ble Bombay High Court in the case of BanqueNationale de Paris Vs. CIT (1999) 237 ITR 518 (Bom). 18. Further, our view is fortified by the recent Judgment of the Coordinate Bench of Guwahati in the case of ACIT Vs.Oil India Ltd, in ITA No.120 to 123/Gau/2008, for A.Y.2003-04 to 2006-07, order dated 28.08.2019, wherein, on identical facts, it was held as follows: “23. We further notice after a deeper scrutiny that the assessee’s main…

M/S. NUMALIGARH REFINERY LTD.,GUWAHATI vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3, GUWAHATI

In the result, appeals of the assessee in I

ITA 89/GTY/2016[2010-11]Status: DisposedITAT Guwahati13 Sept 2019AY 2010-11

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…e used to curtail or modify the clear meaning of an expression used in the Statute. Thus, a Circular cannot override the provision of law. For that we rely on the judgment of the Hon`ble Bombay High Court in the case of BanqueNationale de Paris Vs. CIT (1999) 237 ITR 518 (Bom). 18. Further, our view is fortified by the recent Judgment of the Coordinate Bench of Guwahati in the case of ACIT Vs.Oil India Ltd, in ITA No.120 to 123/Gau/2008, for A.Y.2003-04 to 2006-07, order dated 28.08.2019, wherein, on identical facts, it was held as follows: “23. We further notice after a deeper scrutiny that the assessee’s main…

M/S. NUMALIGARH REFINERY LTD.,GUWAHATI vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3, GUWAHATI

In the result, appeals of the assessee in I

ITA 8/GTY/2014[2010-11]Status: DisposedITAT Guwahati13 Sept 2019AY 2010-11

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…e used to curtail or modify the clear meaning of an expression used in the Statute. Thus, a Circular cannot override the provision of law. For that we rely on the judgment of the Hon`ble Bombay High Court in the case of BanqueNationale de Paris Vs. CIT (1999) 237 ITR 518 (Bom). 18. Further, our view is fortified by the recent Judgment of the Coordinate Bench of Guwahati in the case of ACIT Vs.Oil India Ltd, in ITA No.120 to 123/Gau/2008, for A.Y.2003-04 to 2006-07, order dated 28.08.2019, wherein, on identical facts, it was held as follows: “23. We further notice after a deeper scrutiny that the assessee’s main…

M/S. NUMALIGARH REFINERY LTD.,GUWAHATI vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3, GUWAHATI

In the result, appeals of the assessee in I

ITA 7/GTY/2014[2009-10]Status: DisposedITAT Guwahati13 Sept 2019AY 2009-10

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…e used to curtail or modify the clear meaning of an expression used in the Statute. Thus, a Circular cannot override the provision of law. For that we rely on the judgment of the Hon`ble Bombay High Court in the case of BanqueNationale de Paris Vs. CIT (1999) 237 ITR 518 (Bom). 18. Further, our view is fortified by the recent Judgment of the Coordinate Bench of Guwahati in the case of ACIT Vs.Oil India Ltd, in ITA No.120 to 123/Gau/2008, for A.Y.2003-04 to 2006-07, order dated 28.08.2019, wherein, on identical facts, it was held as follows: “23. We further notice after a deeper scrutiny that the assessee’s main…

M/S. NUMALIGARH REFINERY LTD.,GUWAHATI vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3, GUWAHATI

In the result, appeals of the assessee in I

ITA 5/GTY/2014[2007-08]Status: DisposedITAT Guwahati13 Sept 2019AY 2007-08

Bench: Shri S.S. Godara, Jm & Dr. A.L. Saini, Am Assessee`S Appeals

For Appellant: Shri Jayanta Dutta, ARFor Respondent: Shri Sanjay Sarma, DR
Section 80

…e used to curtail or modify the clear meaning of an expression used in the Statute. Thus, a Circular cannot override the provision of law. For that we rely on the judgment of the Hon`ble Bombay High Court in the case of BanqueNationale de Paris Vs. CIT (1999) 237 ITR 518 (Bom). 18. Further, our view is fortified by the recent Judgment of the Coordinate Bench of Guwahati in the case of ACIT Vs.Oil India Ltd, in ITA No.120 to 123/Gau/2008, for A.Y.2003-04 to 2006-07, order dated 28.08.2019, wherein, on identical facts, it was held as follows: “23. We further notice after a deeper scrutiny that the assessee’s main…

NITIN BHIMSEN AGARWAL,PUNE vs. ITO, WARD 9(1), PUNE

In the result, both the appeals of the assessee are partly allowed

ITA 638/PUN/2013[2009-10]Status: DisposedITAT Pune04 Sept 2019AY 2009-10
For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri N. Ashok Babu
Section 143(3)

…Assessing Officers to extend the scope of scrutiny to the issues other than the ones which are authorised the Board in this regard under CASS. It is also a fact that judgment cited by the Ld. DR for the Revenue in the case of Banque Nationale De Paris Vs. CIT 237 ITR 518 (Bom.) was not issued in connection with the jurisdiction of the AO in matters relating to extension of areas of scrutiny to the ones than the authorised ones by the Board. In this connection, we perused the CBDT Instruction No.7/2014, dated 26-09-2014 and find it relevant to extract the relevant lines. The same reads as under : “4. In case, duri…

SURENDRA BHIMSEN AGARWAL,PUNE vs. ASST. CIT, CIRCLE-8, PUNE

In the result, both the appeals of the assessee are partly allowed

ITA 637/PUN/2013[2009-10]Status: DisposedITAT Pune04 Sept 2019AY 2009-10
For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri N. Ashok Babu
Section 143(3)

…Assessing Officers to extend the scope of scrutiny to the issues other than the ones which are authorised the Board in this regard under CASS. It is also a fact that judgment cited by the Ld. DR for the Revenue in the case of Banque Nationale De Paris Vs. CIT 237 ITR 518 (Bom.) was not issued in connection with the jurisdiction of the AO in matters relating to extension of areas of scrutiny to the ones than the authorised ones by the Board. In this connection, we perused the CBDT Instruction No.7/2014, dated 26-09-2014 and find it relevant to extract the relevant lines. The same reads as under : “4. In case, duri…

NILESH VASANT SHENDE,,PUNE vs. ASSISTANT COMMISSIONER OF INCOME-TAX,,

In the result, appeal of the assessee is allowed

ITA 670/PUN/2016[2009-10]Status: DisposedITAT Pune28 Jun 2019AY 2009-10

Bench: Shri Anil Chaturvedi, Am & Shri Partha Sarathi Chaudhury, Jm आयकर अपीऱ सं. / Ita No.670/Pun/2016 नििाारण वषा / Assessment Year : 2009-10 Shri Nilesh Vasant Shende, Mzsk & Associates Chartered Accountants, Level-3, Business Bay, Plot No.84, Wellesley Road, Near Rto, Pune-411 001. Pan : Anxps3098L .......अऩीऱाथी / Appellant बिाम / V/S.

For Appellant: Shri Neelesh KhandelwalFor Respondent: Shri Vishwas Mundhe
Section 143(2)

…f the Ld. DR that AO has all powers to examine any issue which he deems fit despite the restrictions imposed by the Board on the AOs. For this proposition, he relied on the judgment of Hon‟ble Bombay High Court in the case of Banque Nationale De Paris Vs. CIT 237 ITR 518. 7. During the rebuttal time, on the issue of overriding powers of the AO vide the directions issued by the CBDT through the circular, Ld. Counsel for the assessee submitted that it is settled legal proposition that the AOs are under obligation to abide with the letters/circulars issued by the CBDT in this regard and the same are issued for a cla…

RADHE RADHE LABOUR CO-OP SOCIETY LTD,,JALNA vs. INCOME-TAX OFFICER, WARD - 1,, JALNA

In the result, both the appeals of assessee are allowed

ITA 1590/PUN/2018[2015-16]Status: DisposedITAT Pune28 Mar 2019AY 2015-16

Bench: Ms. Sushma Chowla, Jm & Shri Anil Chaturvedi, Am आयकर अपीऱ सं. / Ita No.1589/Pun/2018 यििाारण वषा / Assessment Year : 2015-16

For Appellant: Shri K. SrinivasanFor Respondent: Shri M.K. Verma
Section 142(1)Section 143(3)Section 80PSection 80P(2)(a)

…Assessing Officers to extend the scope of scrutiny to the issues other than the ones which are authorised the Board in this regard under CASS. It is also a fact that judgment cited by the Ld. DR for the Revenue in the case of Banque Nationale De Paris Vs. CIT 237 ITR 518 (Bom.) was not issued in connection with the jurisdiction of the AO in matters relating to extension of areas of scrutiny to the ones than the authorised ones by the Board. In this connection, we perused the CBDT Instruction No.7/2014, dated 26-09-2014 and find it relevant to extract the relevant lines. The same reads as under : “4. In case, duri…

LOKESH SADASHIV SHETTY,,AHMEDNAGAR vs. INCOME-TAX OFFICER, WARD - 2,, AHMEDNAGAR

In the result, the appeal of the assessee is partly allowed

ITA 741/PUN/2018[2014-15]Status: DisposedITAT Pune20 Feb 2019AY 2014-15
For Appellant: Smt. Deepa KhareFor Respondent: Shri M. K. Verma
Section 244ASection 264

…आयकर अपीलीय अिधकरण, पुणे "यायपीठ “एक-सद"य मामला” पुणे म" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE "ी डी. क"णाकरा राव, लेखा सद"य के सम" BEFORE SHRI D. KARUNAKARA RAO, AM आयकर अपील सं. / ITA No.741/PUN/2018 िनधा"रण वष" / Assessment Year : 2014-15 Lokesh Sadashiv Shetty, 103, Green Park, Bhistbagh, Behind Savedi Bus Stop, Sadevi, Ahmednagar-414003. अपीलाथ"/Appellant PAN : CJEPS0054H …. Vs. ITO, Ward-2, …. ""थ" / Respondent Ahmednagar. अपीलाथ" क" ओर से / Appellant by : Smt. Deepa Khare ""थ" की ओर से / Respondent by : Shri M. K. Verma सुनवाई क" तारीख / घोषणा क" तारीख / Date of Hearing : 14.02.2019…

SHRI.DHAWAL SINGH MOHITE PATIL SAHAKARI DUDH UTPADAK SANSTHA LTD,,SOLAPUR vs. INCOME-TAX OFFICER, WARD - 1,, SOLAPUR

In the result, all the ten appeals of the respective assessees are partly allowed

ITA 1535/PUN/2018[2014-15]Status: DisposedITAT Pune08 Feb 2019AY 2014-15

Bench: Shri D. Karunakara Rao, Am & Shri Partha Sarathi Chaudhury, Jm Sl.

…Assessing Officers to extend the scope of scrutiny to the issues other than the ones which are authorised the Board in this regard under CASS. It is also a fact that judgment cited by the Ld. DR for the Revenue in the case of Banque Nationale De Paris Vs. CIT 237 ITR 518 (Bom.) was not issued in connection with the jurisdiction of the AO in matters relating to extension of areas of scrutiny to the ones than the authorised ones by the Board. In this connection, we perused the CBDT Instruction No.7/2014, dated 26-09-2014 and find it relevant to extract the relevant lines. The same reads as under : “4. In case, duri…

SHRIDATTA DUDH UTPADAK SANSTHA LTD,,SOLAPUR vs. INCOME-TAX OFFICER, WARD - 1,, SOLAPUR

In the result, all the ten appeals of the respective assessees are partly allowed

ITA 1534/PUN/2018[2014-15]Status: DisposedITAT Pune08 Feb 2019AY 2014-15

Bench: Shri D. Karunakara Rao, Am & Shri Partha Sarathi Chaudhury, Jm Sl.

…Assessing Officers to extend the scope of scrutiny to the issues other than the ones which are authorised the Board in this regard under CASS. It is also a fact that judgment cited by the Ld. DR for the Revenue in the case of Banque Nationale De Paris Vs. CIT 237 ITR 518 (Bom.) was not issued in connection with the jurisdiction of the AO in matters relating to extension of areas of scrutiny to the ones than the authorised ones by the Board. In this connection, we perused the CBDT Instruction No.7/2014, dated 26-09-2014 and find it relevant to extract the relevant lines. The same reads as under : “4. In case, duri…

SHRIRAM SAHAKAI DUDH UTPADAK SANSTHA LTD,,SOLAPUR vs. INCOME-TAX OFFICER, WARD - 1,, PANDHARPUR

In the result, all the ten appeals of the respective assessees are partly allowed

ITA 1533/PUN/2018[2014-15]Status: DisposedITAT Pune08 Feb 2019AY 2014-15

Bench: Shri D. Karunakara Rao, Am & Shri Partha Sarathi Chaudhury, Jm Sl.

…Assessing Officers to extend the scope of scrutiny to the issues other than the ones which are authorised the Board in this regard under CASS. It is also a fact that judgment cited by the Ld. DR for the Revenue in the case of Banque Nationale De Paris Vs. CIT 237 ITR 518 (Bom.) was not issued in connection with the jurisdiction of the AO in matters relating to extension of areas of scrutiny to the ones than the authorised ones by the Board. In this connection, we perused the CBDT Instruction No.7/2014, dated 26-09-2014 and find it relevant to extract the relevant lines. The same reads as under : “4. In case, duri…

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