CIT v. Canfin Homes Ltd.

347 ITR 382High Court2012#1854 most cited

What is CIT v. Canfin Homes Ltd. authority for?

Interest income from non-performing assets (NPAs) is not assessable as income, even for assessees following the mercantile system of accounting, in the context of Section 145 of the Income-tax Act.

62

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2022.

Also referred to as

CIT v. Canfin Homes Ltd. · 347 ITR 382 · non-performing assets interest · NPA income assessability · Section 145 · mercantile system accounting · co-operative bank income · Section 43D · financial institution income recognition · cash basis NPA interest · income from NPAs

Also reported as

201 Taxmann 27313 Taxmann.com 43

Judgments citing CIT v. Canfin Homes Ltd.

The Pr.Commissioner of vs. M/S the Davanagere Urban

ITA/781/2017HC Karnataka28 Feb 2018

Bench: ABHAY SHREENIWAS OKA (CJ),S SUNIL DUTT YADAV

Section 145Section 260

…IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF FEBRUARY, 2018 PRESENT HON'BLE MR. JUSTICE DINESH MAHESHWARI, CHIEF JUSTICE AND HON'BLE MR.JUSTICE S.SUNIL DUTT YADAV INCOME TAX APPEAL NO.781 OF 2017 BETWEEN: 1. THE PR.COMMISSIONER OF INCOME TAX, CIT (A), “ 2ND FLOOR, SHREE TOWERS”, No.565/A, A-1, OPPOSITE TO DRR HOSTEL, HADADI ROAD, DAVANGERE-577 004. 2. THE DEPUTY COMMISSIONER OF INCOME –TAX, CIRCLE-1(1), “2ND FLOOR, SHREE TOWERS”, No.565/A, A-1, OPPOSITE TO DRR HOSTEL, HADADI ROAD, DAVANGERE-577 0…

Assistant Commissioner of Income Tax, Vijayapur vs. M/S.Deccan Urban Co-Op. Bank Ltd., Vijayapur

In the result, appeal of the Revenue is dismissed

ITA 1595/BANG/2016[2012-13]Status: DisposedITAT Bangalore28 Feb 2018AY 2012-13

Bench: Shri Sunil Kumar Yadav & Shri Jason P. Boazassessment Year : 2012-13 Asst. Commissioner Of Vs. M/S. The Deccan Urban Co-Op Income Tax, Bank Ltd., Circle-1, M. G. Road, Vijayapur. Vijayapur. Pan : Aaaat 8050 A Appellant Respondent Revenue By : Dr. P. V. Pradeep Kumar, Addl. Cit Assessee By : None Date Of Hearing : 20.02.2018 Date Of Pronouncement : 28.02.2018

For Appellant: NoneFor Respondent: Dr. P. V. Pradeep Kumar, Addl. CIT
Section 43D

…IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI JASON P. BOAZ, ACCOUNTANT MEMBER Assessment year : 2012-13 Asst. Commissioner of Vs. M/s. The Deccan Urban Co-op Income Tax, Bank Ltd., Circle-1, M. G. Road, Vijayapur. Vijayapur. PAN : AAAAT 8050 A APPELLANT RESPONDENT Revenue by : Dr. P. V. Pradeep Kumar, Addl. CIT Assessee by : None Date of hearing : 20.02.2018 Date of Pronouncement : 28.02.2018 O R D E R Per Sunil Kumar Yadav, Judicial Member This appeal is preferred by the Revenue against the order of the CIT(A), inter alia, on following grou…

The Pr. Commissioner of Income Tax vs. Shree Shantappa Miraji Urban

In the result, appeal stands dismissed

ITA/100006/2017HC Karnataka05 Feb 2018

Bench: JOHN MICHAEL CUNHA,S.SUJATHA

Section 260ASection 43D

…61 amended w.e.f. 01.04.2000?” 3. The issue involved in this appeal is no more res integra in view of the decision of the Co-ordinate Bench of : 3 : this Court in the case of Commissioner of Income-Tax and another Vs. Canfin Homes Limited (2012) 347 ITR 382 (Karn), which has been followed by yet another Co- ordinate Bench of this Court in the case of The Commissioner of Income Tax and another Vs. Shri Siddeshwar Co-Operative Bank Limited and others in ITA No.200002/2015 and connected matters (DD 22nd June 2016). 4. This Court in Canfin Homes Limited (supra), has held as under: “Therefore…

The Pr Commissioner of Income Tax vs. Shree Shantappanna Miraji Urban

In the result, appeal stands dismissed

ITA/100041/2017HC Karnataka30 Jan 2018

Bench: JOHN MICHAEL CUNHA,S.SUJATHA

Section 260Section 260ASection 43D

…when the respondent is following mercantile system of accounting?” : 3 : 2. The issue involved in this appeal is no more res-integra in view of the judgment of this Court in Commissioner of Income Tax and another V/s Canfin Homes Ltd. (2012) 347 ITR 382 (Karn), wherein it is held as follows: “Therefore, it is clear, if an assessee adopts the mercantile system of accounting and in his accounts he shows a particular income as accruing, whether that amount is really accrued or not is liable to bring the said income to tax. His accounts should reflect true and correct statement of affairs. M…

The Pr Commissioner of Income Tax vs. Sri Veer Pulakeshi Co Operative Bank Ltd

In the result, appeal stands dismissed

ITA/100038/2017HC Karnataka29 Jan 2018

Bench: JOHN MICHAEL CUNHA,S.SUJATHA

Section 260ASection 43D

…cantile system of accounting?” 3. The issue involved in this appeal is no more res integra in view of the decision of the Co-ordinate Bench of : 3 : this Court in the case of Commissioner of Income-Tax and another Vs. Canfin Homes Limited (2012) 347 ITR 382 (Karn), which has been followed by yet another Co- ordinate Bench of this Court in the case of The Commissioner of Income Tax and another Vs. Shri Siddeshwar Co-Operative Bank Limited and others in ITA No.200002/2015 and connected matters (DD 22nd June 2016). 4. This Court in Canfin Homes Limited (supra), has held as under: “Therefore…

The Pr Commissioner of Income Tax vs. M/S. Bagalkot District Central

In the result, appeal stands dismissed

ITA/100037/2017HC Karnataka29 Jan 2018

Bench: JOHN MICHAEL CUNHA,S.SUJATHA

Section 260ASection 43D

…ntile system of accounting?” 3. The issue involved in this appeal is no more res integra in view of the decision of the Co-ordinate Bench of : 3 : this Court in the case of Commissioner of Income-Tax and another Vs. Canfin Homes Limited (2012) 347 ITR 382 (Karn), which has been followed by yet another Co- ordinate Bench of this Court in the case of The Commissioner of Income Tax and another Vs. Shri Siddeshwar Co-Operative Bank Limited and others in ITA No.200002/2015 and connected matters (DD 22nd June 2016). 4. This Court in Canfin Homes Limited (supra), has held as under: “Therefore…

The Principal Commissioner vs. Shri Laxmi Sahakari Bank Niyamit

In the result, appeals filed by the Revenue stands

ITA/100087/2015HC Karnataka29 Jan 2018

Bench: JOHN MICHAEL CUNHA,S.SUJATHA

Section 145Section 194A(3)(v)Section 260A

…gards 1st question, this Court in the case of Shri Siddeshwar Co-operative Bank Limited and others(supra) placing reliance on the Co-ordinate Bench judgment of this Court in the case of Commissioner of Income Tax and another V/s Canfin Homes Ltd. (2012) 347 ITR 382 (Karn), has held that mere nomenclature adopted with reference to the bad loans and advances receivable, would refer to all non-performing assets of any nature, of whatever category placed as a non-performing asset and therefore, the contention of the Revenue that in respect of non-performing assets even though it does not yield any…

The Pr Commissioner of Income Tax vs. Shri Veer Pulakeshi

In the result, appeal stands dismissed

ITA/100039/2017HC Karnataka29 Jan 2018

Bench: JOHN MICHAEL CUNHA,S.SUJATHA

Section 260ASection 43D

…cantile system of accounting?” 3. The issue involved in this appeal is no more res integra in view of the decision of the Co-ordinate Bench of : 3 : this Court in the case of Commissioner of Income-Tax and another Vs. Canfin Homes Limited (2012) 347 ITR 382 (Karn), which has been followed by yet another Co- ordinate Bench of this Court in the case of The Commissioner of Income Tax and another Vs. Shri Siddeshwar Co-Operative Bank Limited and others in ITA No.200002/2015 and connected matters (DD 22nd June 2016). 4. This Court in Canfin Homes Limited (supra), has held as under: “Therefore…

Dhanraj Mills P.Ltd, Palghar vs. ACIT (OSD-II) Cr 7, Thane

In the result, the ground raised by the assessee in all the assessment years challenging additions made by the AO towards interest receivable from CIFCO group of companies, Excel & Co, VKSA

ITA 1255/MUM/2017[1993-94]Status: DisposedITAT Mumbai19 Jan 2018AY 1993-94

Bench: Shri Saktijit Dey () & Shri G Manjunatha ()

Section 143(3)Section 234ASection 271

…. In this regard, he relied upon the following judgements:- 1. CIT vs Elgi Finance Ltd (2007) 93 ITR 357 (Mad) 2. CIT vs M|ahavir Co P Ltd (1996) 206 ITR 68 (Raj) 3. CIT vs Vasisth Chay Vyapar Ltd (2011) 330 ITR 440 (Del) 4. CIT vs Canfin Homes Ltd (2012) 347 ITR 382 (Kar) 5. M/s Greenland Finance & Leasing P Ltd vs ITO – ITA No.6166/Del/2012 14. The Ld.Standing Counsel appearing for revenue submitted that the assessee has been given enough time to substantiate his case with necessary evidences, but the assessee has failed to file any evidences. Therefore, at this juncture the assessee’s argument that inte…

Dhanraj Mills P.Ltd, Mumbai vs. ACIT (OSD-II) Cr-7, Mumbai

In the result, the ground raised by the assessee in all the assessment years challenging additions made by the AO towards interest receivable from CIFCO group of companies, Excel & Co, VKSA

ITA 1679/MUM/2015[1993-94]Status: DisposedITAT Mumbai19 Jan 2018AY 1993-94

Bench: Shri Saktijit Dey () & Shri G Manjunatha ()

Section 143(3)Section 234ASection 271

…. In this regard, he relied upon the following judgements:- 1. CIT vs Elgi Finance Ltd (2007) 93 ITR 357 (Mad) 2. CIT vs M|ahavir Co P Ltd (1996) 206 ITR 68 (Raj) 3. CIT vs Vasisth Chay Vyapar Ltd (2011) 330 ITR 440 (Del) 4. CIT vs Canfin Homes Ltd (2012) 347 ITR 382 (Kar) 5. M/s Greenland Finance & Leasing P Ltd vs ITO – ITA No.6166/Del/2012 14. The Ld.Standing Counsel appearing for revenue submitted that the assessee has been given enough time to substantiate his case with necessary evidences, but the assessee has failed to file any evidences. Therefore, at this juncture the assessee’s argument that inte…

DCIT, Davangere vs. M/S Hiriyur Urban Co-Operative Bank Ltd., Harihara

In the result, the appeal of revenue stands dismissed

ITA 776/BANG/2016[2010-11]Status: DisposedITAT Bangalore10 Nov 2017AY 2010-11

Bench: Shri Sunil Kumar Yadav & Shri A.K. Garodiaassessment Year : 2010-11

For Appellant: Smt. Padma Meenakshi, Jt. CIT(DR)(ITAT), BengaluruFor Respondent: Shri Sandeep, CA
Section 119

…ccount of interest accrued Non-performing Assets (NPA). 3. During the course of hearing, the ld. counsel for the assessee has invited our attention to the judgment of the Hon'ble jurisdictional High Court in the case of CIT & Anr. v. Canfin Homes Ltd. (2012) 347 ITR 382 (Kar) in which it has been held that income from NPA should be assessed on cash basis and not on mercantile basis, despite the assessee following the mercantile system of accounting. 4. The ld. DR did not dispute these facts. He, however, placed reliance upon the order of the AO. 5. Having carefully examined the orders of the lower authorities…

Joint Commissioner of Income Tax, Davangere vs. Davangere District Central Co.Op Bank Ltd, Davangere

In the result, the assessee's appeal for Assessment Year 2010-11 is partly allowed

ITA 1147/BANG/2014[2010-11]Status: DisposedITAT Bangalore03 Nov 2017AY 2010-11

Bench: Shri George George K & Shri Jason P Boazi.T. A. No.1147/Bang/2014 (Assessment Year : 2010-11) Joint Commissioner Of Income Tax, Circle 1, Davangere. …. Appellant. Vs. M/S. Davangere District Central Co-Op. Bank Ltd., Devaraja Urs Layout, Davangere. ….. Respondent.

For Appellant: Smt. Padma Meenakshi, JCIT (D.R)For Respondent: Shri Suresh Muthukrishnan, C.A
Section 143(1)Section 143(3)Section 36(1)(viia)

…IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH ‘ B ’ BEFORE SHRI GEORGE GEORGE K, JUDICIAL MEMBER AND SHRI JASON P BOAZ, ACCOUNTANT MEMBER I.T. A. No.1147/Bang/2014 (Assessment Year : 2010-11) Joint Commissioner of Income Tax, Circle 1, Davangere. …. Appellant. Vs. M/s. Davangere District Central Co-op. Bank Ltd., Devaraja Urs Layout, Davangere. ….. Respondent. I.T. A. No.1093/Bang/2014 (Assessment Year : 2010-11) M/s. Davangere District Central Co-op. Bank Ltd., Devaraja Urs Layout, Davangere. …. Appellant. Vs. Income Tax Officer, Ward 1, Davangere. ….. Respondent. Assessee By : Smt. Padma Meenakshi,…

M/S.Chitradurga District Co-Op. Central Bank Ltd., Chitradurga vs. Deputy Commissioner of Income-Tax, Davangere

In the result, the cross appeals for both the years are partly allowed

ITA 1522/BANG/2016[2010-11]Status: DisposedITAT Bangalore28 Sept 2017AY 2010-11

Bench: Shri Vijay Pal Rao & Shri Jason P Boazi.T. A. Nos.1522 & 1523/Bang/2016 (Assessment Years : 2009-10 & 2010-11) M/S. Chitradurga District Co-Op. Central Bank Ltd., Cdcc Bank Building, Chitradurga. …. Appellant. Vs. Dy. Commissioner Of Income Tax, Circle – 1, Davangere. ….. Respondent. I.T. A. Nos.1548 & 1549/Bang/2016 (Assessment Years : 2009-10 & 2010-11) Dy. Commissioner Of Income Tax, Circle – 2(1), Davangere. ….. Appellant. Vs. M/S. Chitradurga District Co-Op. Central Bank Ltd., Cdcc Bank Building, Chitradurga. …. Respondent.

For Appellant: Shri Suresh Muthukrishnan, CAFor Respondent: Shri M.K. Biju, JCIT (DR) (ITAT)-3, Bengaluru

…ed/receivable by the assessee has to be added to the income reported and accordingly brought to tax. On appeal, the CIT (Appeals) deleted the addition partially by following the decision of Hon'ble jurisdictional High Court in the case of CIT Vs. Canfin Homes 347 ITR 382. He has also relied upon the Hon'ble jurisdictional High Court in the case of CIT Vs. Siddeshwar Co-operative Bank Limited reported in 388 ITR 588. 5. We have heard the learned Departmental Representative as well as learned Authoised Representative and considered the relevant material on record. At the outset, we note that this issue is covered b…

DCIT, Shimoga vs. M/S City Co-Operative Bank, Shimoga

In the result, the appeals of the revenue are dismissed

ITA 790/BANG/2016[2009-10]Status: DisposedITAT Bangalore17 Mar 2017AY 2009-10

Bench: Shri A.K. Garodia & Shri Vijay Pal Rao

For Appellant: Smt. Swapna Das, JCIT (DR)For Respondent: Shri S. Krishnaswamy, CA
Section 143(3)Section 144Section 145Section 145(1)

…nts of both statutes and the requirement of general ITA Nos. 789 & 790/Bang/2016 Page 3 of 8 provisions of section 145 of IT Act. The assessee also placed reliance on the decision of Hon’ble jurisdictional High Court in the case of CIT Vs Canfin Homes Ltd. 347 ITR 382. The CIT(A) allowed the claim of the assessee regarding exclusion of interest on NPA by following decision of Hon’ble jurisdictional High Court in case of CIT Vs Canfin Homes Ltd.(supra). Before us the ld. DR has relied upon the orders of the AO and submitted that the revenue did not accept the decision in case of CIT Vs Canfin Homes Ltd.(supra…

DCIT, Shimoga vs. M/S City Co-Operative Bank, Shimoga

In the result, the appeals of the revenue are dismissed

ITA 789/BANG/2016[2008-09]Status: DisposedITAT Bangalore17 Mar 2017AY 2008-09

Bench: Shri A.K. Garodia & Shri Vijay Pal Rao

For Appellant: Smt. Swapna Das, JCIT (DR)For Respondent: Shri S. Krishnaswamy, CA
Section 143(3)Section 144Section 145Section 145(1)

…nts of both statutes and the requirement of general ITA Nos. 789 & 790/Bang/2016 Page 3 of 8 provisions of section 145 of IT Act. The assessee also placed reliance on the decision of Hon’ble jurisdictional High Court in the case of CIT Vs Canfin Homes Ltd. 347 ITR 382. The CIT(A) allowed the claim of the assessee regarding exclusion of interest on NPA by following decision of Hon’ble jurisdictional High Court in case of CIT Vs Canfin Homes Ltd.(supra). Before us the ld. DR has relied upon the orders of the AO and submitted that the revenue did not accept the decision in case of CIT Vs Canfin Homes Ltd.(supra…

The Commissioner of Income Tax vs. The Raddi Sahakara Bank Niyamitha

The appeals stand disposed of

ITA/100026/2014HC Karnataka30 Jan 2017

Bench: SREENIVAS HARISH KUMAR,VINEET KOTHARI

Section 260ASection 41(1)

…Siddeshwar Co-operative Bank Limited (ITA No.200002/2015 along with other connected appeals, decided on 22.06.2016, following the previous decisions of this Court in the case of Commissioner of Income Tax and another Vs. Canfin Homes Ltd., reported in (2012) 347 ITR 382 (Karn), has held that such accrued interest on non-performing assets cannot be brought to tax in the hands of the assessee. The relevant portion of the judgment of the Division bench of this Court in Commissioner of Income Tax Vs. Shri. Siddeshwar Co- Operative Bank Limited (supra) is also quoted below for ready reference: 12/18 Date of Order…

The Commissioner of Income Tax vs. Shri Basaveshwara Sahakari Bank Niyamith

The appeal is disposed of accordingly

ITA/100131/2014HC Karnataka16 Aug 2016

Bench: H.BILLAPPA,K.N.PHANEENDRA

Section 194(3)(v)Section 194A(3)(v)Section 260ASection 36(1)Section 36(1)(iv)Section 36(1)(v)Section 37Section 37(1)

…nd could be deducted.” 7. The third question is answered at para 5 as follows: “ 5. ………………………In this regard, the learned counsel for the assessee has produced a judgment of this Court in Commissioner of Income-Tax and another vs. Canfin Homes Ltd. (2012) 347 ITR 382 (Karn) with reference to non-performing assets. The Division Bench of this Court has held as follows: “ Therefore, it is clear, if an assessee adopts the mercantile system of accounting and in his accounts he shows a particular income as accruing, whether that amount is really accrued or not is liable to bring the said income to tax. His account…

Asst.C.I.T., Mangalore vs. M/S the South Canara District Central Co-Operative Bank Ltd., Mangalore

In the result, the appeal filed by the revenue is dismissed

ITA 1195/BANG/2015[2012-13]Status: DisposedITAT Bangalore09 Mar 2016AY 2012-13

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri S. Ramasubramanian, CAFor Respondent: Mrs. Neera Malhotra, CIT-II
Section 144Section 194A(3)

…rly held that this interest on NPAs has also accrued to the assessee as on 31-03-2012 and is taxable. The ld.CIT(A) has relied upon he decision of Hon’ble jurisdictional High Court in the case of CIT Vs Canfin Homes Ltd(2011) 5 Tax Corp(DT) 49593, reported in 347 ITR 382 on this issue despite the fact that the department has challenged this decision before the Hon ‘ble Supreme Court and the SLP is pending in this case. 3.1 The ld.CIT(A) ought to have upheld the decision of the AO in respect of the addition made in the case of interest income on account of method of accounting followed by the assessee as the asse…

M/S Housing & Urban Devlopment Corporation Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, both the appeals filed by the Revenue are allowed for statistical purpose

ITA 3366/DEL/2013[2009-10]Status: DisposedITAT Delhi09 Feb 2016AY 2009-10

Bench: H.S. Sidhu & Sh. O.P. Kantsl. No.

Section 139(5)Section 143(1)Section 143(2)Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘C’: NEW DELHI BEFORE H.S. SIDHU, JUDICIAL MEMBER AND SH. O.P. KANT, ACCOUNTANT MEMBER Sl. No. ITA Nos. Assessment Years 1. 4303/Del/2009 2004-05 2. 1166/Del/2012 2005-06 3. 1167/Del/2012 2006-07 4. 1168/Del/2012 2007-08 5. 3365/Del/2013 2008-09 6. 3366/Del/2013 2009-10 Housing and Urban Development Vs. DCIT/Addl. CIT, Circle-12(1), Corporation Ltd. (HUDCO), New Delhi Hudco Bhawan, Lodhi Road, New Delhi (PAN: AAACH0632A) (Appellant) (Respondent) And ITA Nos. 1561 & 1562/Del/2012 Assessment Years: 2006-07 & 2007-08 ACIT, Circle-12(1), New Delhi Vs. Housing and Urb…

M/S Housing & Urban Devlopment Corporation Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, both the appeals filed by the Revenue are allowed for statistical purpose

ITA 3365/DEL/2013[2008-09]Status: DisposedITAT Delhi09 Feb 2016AY 2008-09

Bench: H.S. Sidhu & Sh. O.P. Kantsl. No.

Section 139(5)Section 143(1)Section 143(2)Section 14A

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘C’: NEW DELHI BEFORE H.S. SIDHU, JUDICIAL MEMBER AND SH. O.P. KANT, ACCOUNTANT MEMBER Sl. No. ITA Nos. Assessment Years 1. 4303/Del/2009 2004-05 2. 1166/Del/2012 2005-06 3. 1167/Del/2012 2006-07 4. 1168/Del/2012 2007-08 5. 3365/Del/2013 2008-09 6. 3366/Del/2013 2009-10 Housing and Urban Development Vs. DCIT/Addl. CIT, Circle-12(1), Corporation Ltd. (HUDCO), New Delhi Hudco Bhawan, Lodhi Road, New Delhi (PAN: AAACH0632A) (Appellant) (Respondent) And ITA Nos. 1561 & 1562/Del/2012 Assessment Years: 2006-07 & 2007-08 ACIT, Circle-12(1), New Delhi Vs. Housing and Urb…