CIT v. Sakthi Finance Ltd.

352 ITR 102High Court2013#8650 most cited

What is CIT v. Sakthi Finance Ltd. authority for?

RBI norms permitting recognition of interest on NPAs on a cash basis for accounting do not override tax provisions; such interest income is taxable under the Income Tax Act even if not accrued in the assessee's books.

13

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2025.

Also referred to as

CIT v. Sakthi Finance Ltd. · interest on NPAs · taxable income · RBI norms · cash basis accounting · accrual of income · Income Tax Act

Also reported as

130 Taxmann 30431 Taxmann.com 305

Judgments citing CIT v. Sakthi Finance Ltd.

Aditya Birla Finance Limited, Mumbai vs. Assistant Commissioner of Income-Tax - 2(1)(1), Mumbai

In the result, the appeal is partly allowed

ITA 4821/MUM/2024[AY 2017-18]Status: DisposedITAT Mumbai08 Jul 2025

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

For Appellant: Shri Yogesh Thar & Ms. S.Jayaram, ARsFor Respondent: Shri Rajesh Kumar Yadav, (CIT DR)
Section 135Section 143(3)Section 32Section 43BSection 80G

…st on NPAs on a cash basis for accounting purposes, taxable income must be computed under the Act. Relying on the Supreme Court ruling in Southern Technologies Ltd (2010) 320 ITR 577, and the Madras High Court ruling in the case of CIT v. Sakthi Finance Ltd. (352 ITR 102),he held that RBI norms cannot override tax provisions. Since the loans were still reflected as assets and no details were provided regarding recovery or collateral, the interest income on such NPAs, not accrued by the assessee in its books of account, was held to be taxable and accordingly an addition amounting to Rs.29,14,85,629/- was made to t…

Vardhman (Mahila) Co-Operative Urban Bank Limited, Hyderabad vs. ACIT, Circle-14(1), Hyderabad

Appeal is allowed in above terms

ITA 624/HYD/2017[2013-14]Status: DisposedITAT Hyderabad17 Jan 2022AY 2013-14

Bench: Shri A.Mohan Alankamony & Shri S.S.Godara

For Appellant: NONEFor Respondent: Shri T.Sunil Goutam, DR
Section 143(3)Section 145Section 430Section 43DSection 6

…IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “A” : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI S.S.GODARA, JUDICIAL MEMBER I.T.A. No. 624/HYD/2017 Assessment Year: 2013-14 Vardhaman (Mahila) Asst.Commissioner of Co-operative Urban Vs Income Tax, Bank Ltd., Circle-14(1), HYDERABAD HYDERABAD [PAN: AABAT6711D] (Appellant) (Respondent) For Assessee : NONE For Revenue : Shri T.Sunil Goutam, DR Date of Hearing : 21-12-2021 Date of Pronouncement : 17-01-2022 O R D E R PER S.S.GODARA, J.M. : This assessee’s appeal for AY.2013-14 arises from the CIT(A)-6,…

Deputy Commissioner of Income Tax, Pune vs. M/S. Pune Cantonment Sahakari Bank Ltd, Pune

In the result, both the appeals of Revenue are dismissed

ITA 435/PUN/2017[2007-08]Status: DisposedITAT Pune27 Mar 2019AY 2007-08

Bench: Shri Anil Chaturvedi, Am & Shri Partha Sarathi Chaudhury, Jm

For Appellant: Shri Dhiraj DandgavelFor Respondent: Shri Abhijit Haldar
Section 145Section 148Section 154Section 36(1)(viia)Section 43D

…आयकर अपील"य अ"धकरण] पुणे "यायपीठ “बी” पुणे म" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI ANIL CHATURVEDI, AM AND SHRI PARTHA SARATHI CHAUDHURY, JM आयकर अपील सं. / ITA Nos.435 & 436/PUN/2017 "नधा"रण वष" / Assessment Years : 2007-08 and 2012-13 The Dy. Commissioner of Income Tax, ………. अपीलाथ" / Circle – 7, Pune. Appellant बनाम v/s M/s. Pune Cantonment Sahakari ………. ""यथ" / Bank Ltd., 150, Radiant House, Respondent Mahatma Gandhi Road Camp, Pune – 411001. PAN : AAAAP1811H. Assessee by : Shri Dhiraj Dandgavel. Revenue by : Shri Abhijit Haldar. सुनवाई क" तार"ख / घोषणा क" तार"ख / Date…

Assistant Commissioner of Income Tax vs. M/S. the Deola Merchant Co-Operative Bank Ltd, Nashik

In the result, appeal of the Revenue is dismissed

ITA 2992/PUN/2016[2013-14]Status: DisposedITAT Pune19 Sept 2018AY 2013-14

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm आयकर अपील अपील संसंसंसं. / Ita No.2992/Pun/2016 आयकर आयकर आयकर अपील अपील िनधा"रण वष" वष" / Assessment Year : 2013-14 िनधा"रण िनधा"रण िनधा"रण वष" वष"

For Appellant: Shri Sudhendu DasFor Respondent: Shri Abhay Avchat
Section 36(1)(viia)Section 43D

…"यायपीठ “बी बी बी” पुणे बी आयकर अपीलीय अपीलीय अिधकरण पुणे "यायपीठ "यायपीठ "यायपीठ पुणे म"म"म"म" आयकर आयकर आयकर अपीलीय अपीलीय अिधकरण अिधकरण, पुणे अिधकरण पुणे पुणे पुणे पुणे IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE "ी डी. क"णाकरा राव , लेखा सद" एवं "ी िवकास अव"थी, "ाियक सद" के सम" BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM आयकर अपील अपील संसंसंसं. / ITA No.2992/PUN/2016 आयकर आयकर आयकर अपील अपील िनधा"रण वष" वष" / Assessment Year : 2013-14 िनधा"रण िनधा"रण िनधा"रण वष" वष" ACIT, Circle-1, अपीलाथ"/Appellant Nashik …. Vs. M/s. The Deola Merchant Co-operative Bank Ltd. Bhagyodaya, At &…

Deputy Commissioner of Income-Tax vs. Lokmangal Co-Op. Bank Ltd

In the result, C.O. No.101/PN/2014 in the case of Lokmangal Co-op

ITA 1097/PUN/2016[2011-12]Status: DisposedITAT Pune20 Jul 2018AY 2011-12

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm

For Appellant: Shri S. N. PuranikFor Respondent: Shri Mukesh Jha
Section 43D

…आयकर अऩीऱीय अधधकरण “बी” न्यायऩीठ ऩुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, PUNE श्री डी. करुणाकरा राव, ऱेखा सदस्य, एवं श्री ववकास अवस्थी, न्याययक सदस्य के समक्ष । BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM आयकर अऩीऱ सं. / ITA No.1097/PUN/2016 यनधाारण वषा / Assessment Year : 2011-12 The Deputy Commissioner of Income Tax, Circle – 2, Solapur .......अऩीऱाथी / Appellant बनाम / V/s. Lokmangal Co-operative Bank Ltd., 193, Gold Finch Peth, Solapur - 413007 PAN : AAAAL0119J ……प्रत्यथी / Respondent Assessee by : Shri S. N. Puranik Revenue by : Shri Mukesh Jha सुनवाई की तारीख / Dat…

Assistant Commissioner of Income-Tax vs. The Solapur District Central Co-Op. Bank Ltd., Ltd

In the result, appeal of the Revenue is dismissed

ITA 1419/PUN/2016[2012-13]Status: DisposedITAT Pune09 May 2018AY 2012-13

Bench: Shri D.Karunakara Rao, Am & Shri Vikas Awasthy, Jm आयकर आयकर अपील आयकर आयकर अपील अपील संसंसंसं. / Ita No.1419/Pun/2016 अपील िनधा"रण िनधा"रण वष" िनधा"रण िनधा"रण वष" वष" / Assessment Year : 2012-13 वष"

For Appellant: Shri S.N. PuranikFor Respondent: Shri Mukesh Jha, JCIT
Section 143(3)Section 43D

…CIT(A) are relevant in this regard) : 1. CIT Vs. M/s. Deogiri Nagari Sahakari Bank Ltd. 128 DTR 0209 dated 11-01-2015 2. Southern Technologies Ltd. Vs. JCIT 320 ITR 577 (SC) 3. M/s. Vasisth Chay Vyapar Ltd. 330 ITR 440 (Delhi) 4. CIT Vs. Sakthi Finance Ltd. 352 ITR 102 (Madras) 5. Aggrieved with the order of CIT(A) Revenue filed the present appeal raising the solitary issue referred above. 6. At the outset, narrating the above facts before us, Ld. Counsel for the assessee argues that provisions of section 43D apply to all the banks including the cooperative banks. Further, Ld. Counsel for the assessee submit…

M/S. Chiranjeevi Wind Energy Ltd., Chennai vs. DCIT, Coimbatore

In the result, the appeal of the assessee in ITA No

ITA 2468/CHNY/2016[2011-12]Status: DisposedITAT Chennai10 Jul 2017AY 2011-12

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddy

For Respondent: Shri R. Vijayaraghavan, Advocate
Section 143(3)Section 32(1)(iia)Section 35DSection 41Section 41(1)

…80,000/- which was claimed as preliminary and pre-operative expenses U/s. 35D of the Act, without considering the decision of the Hon’ble Apex court in the case M/s. Brokebond India Ltd reported in 225 ITR 798 (SC) and the decision of the Hon’ble cited in 130 Taxmann 304. 4. The brief facts of the case are that the assessee is a domestic company where public is substantially interested, engaged in the business of assembling and selling of windmills, filed its return for the assessment year 2010-11 & 2011-12 on 13.10.2010 & 27.11.2011 respectively. Thereafter for both the years the case was taken up for scru…

DCIT, Coimbatore vs. M/S. Chiranjeevi Wind Energy Ltd., Coimbatore

In the result, the appeal of the assessee in ITA No

ITA 2324/CHNY/2016[2011-12]Status: DisposedITAT Chennai10 Jul 2017AY 2011-12

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddy

For Respondent: Shri R. Vijayaraghavan, Advocate
Section 143(3)Section 32(1)(iia)Section 35DSection 41Section 41(1)

…80,000/- which was claimed as preliminary and pre-operative expenses U/s. 35D of the Act, without considering the decision of the Hon’ble Apex court in the case M/s. Brokebond India Ltd reported in 225 ITR 798 (SC) and the decision of the Hon’ble cited in 130 Taxmann 304. 4. The brief facts of the case are that the assessee is a domestic company where public is substantially interested, engaged in the business of assembling and selling of windmills, filed its return for the assessment year 2010-11 & 2011-12 on 13.10.2010 & 27.11.2011 respectively. Thereafter for both the years the case was taken up for scru…

Chiranjeevi Wind Energy Ltd., Chennai vs. DCIT, Coimbatore

In the result, the appeal of the assessee in ITA No

ITA 442/CHNY/2015[2010-11]Status: DisposedITAT Chennai10 Jul 2017AY 2010-11

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddy

For Respondent: Shri R. Vijayaraghavan, Advocate
Section 143(3)Section 32(1)(iia)Section 35DSection 41Section 41(1)

…80,000/- which was claimed as preliminary and pre-operative expenses U/s. 35D of the Act, without considering the decision of the Hon’ble Apex court in the case M/s. Brokebond India Ltd reported in 225 ITR 798 (SC) and the decision of the Hon’ble cited in 130 Taxmann 304. 4. The brief facts of the case are that the assessee is a domestic company where public is substantially interested, engaged in the business of assembling and selling of windmills, filed its return for the assessment year 2010-11 & 2011-12 on 13.10.2010 & 27.11.2011 respectively. Thereafter for both the years the case was taken up for scru…

DCIT, Coimbatore vs. Chiranjjeevi Wind Energy Ltd., Coimbatore

In the result, the appeal of the assessee in ITA No

ITA 319/CHNY/2015[2010-11]Status: DisposedITAT Chennai10 Jul 2017AY 2010-11

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddy

For Respondent: Shri R. Vijayaraghavan, Advocate
Section 143(3)Section 32(1)(iia)Section 35DSection 41Section 41(1)

…80,000/- which was claimed as preliminary and pre-operative expenses U/s. 35D of the Act, without considering the decision of the Hon’ble Apex court in the case M/s. Brokebond India Ltd reported in 225 ITR 798 (SC) and the decision of the Hon’ble cited in 130 Taxmann 304. 4. The brief facts of the case are that the assessee is a domestic company where public is substantially interested, engaged in the business of assembling and selling of windmills, filed its return for the assessment year 2010-11 & 2011-12 on 13.10.2010 & 27.11.2011 respectively. Thereafter for both the years the case was taken up for scru…

Mansi Finance (Chennai) Ltd., Chennai vs. ACIT, Chennai

In the result, both the appeals filed by the assessee are

ITA 1904/CHNY/2016[2005-2006]Status: DisposedITAT Chennai27 Dec 2016AY 2005-2006

Bench: Shri N.R.S. Ganesan & Shri D.S. Sunder Singh

For Appellant: Shri G. Baskar, AdvocateFor Respondent: Shri Murali Mohan, JCIT
Section 145

…. According to the Ld. counsel, the Assessing Officer rejected the claim of the assessee on the ground that the assessee was following mercantile system of accounting. Placing reliance on the judgment of Madras High Court in CIT v. Sakthi Finance Ltd. (2013) 352 ITR 102, the Ld.counsel submitted that the accrual of interest is a matter of fact to be decided separately for each case based on the examination of the facts. When there was uncertainty of recovery of principal amount, it is also uncertainty for recovery of interest. When there was uncertainty for recovery of interest, it cannot be included in the tota…

Mansi Finance (Chennai) Ltd., Chennai vs. ACIT, Chennai

In the result, both the appeals filed by the assessee are

ITA 1903/CHNY/2016[2004-2005]Status: DisposedITAT Chennai27 Dec 2016AY 2004-2005

Bench: Shri N.R.S. Ganesan & Shri D.S. Sunder Singh

For Appellant: Shri G. Baskar, AdvocateFor Respondent: Shri Murali Mohan, JCIT
Section 145

…. According to the Ld. counsel, the Assessing Officer rejected the claim of the assessee on the ground that the assessee was following mercantile system of accounting. Placing reliance on the judgment of Madras High Court in CIT v. Sakthi Finance Ltd. (2013) 352 ITR 102, the Ld.counsel submitted that the accrual of interest is a matter of fact to be decided separately for each case based on the examination of the facts. When there was uncertainty of recovery of principal amount, it is also uncertainty for recovery of interest. When there was uncertainty for recovery of interest, it cannot be included in the tota…

M/S the Right Address Ltd., Kolkata vs. The Income Tax Officer, (TDS) Ward-59(4) (TDS), Kolkata Kolkata, Kolkata

In the result, Revenue’s appeal stands dismissed and assessee’s appeals are allowed

ITA 46/KOL/2014[2008-2009]Status: DisposedITAT Kolkata16 Sept 2016AY 2008-2009

Bench: Shri Waseem Ahmed & Shri K.Narasimha Chary

Section 197(1)Section 201Section 201(1)

…ITA Nos.46&47/Kol/2014 –M/d. The Right Address Ltd. A.Y.20008-09&2009-10 1 IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH “B” KOLKATA Before Shri Waseem Ahmed, Accountant Member and Shri K.Narasimha Chary, Judicial Member ITA Nos.46&47/Kol/2014 Assessment Years:2008-09 & 2009-10 M/s. The Right बनाम / Income tax Officer (TDS), Address Ltd., Sagar Ward-59(4), Kolkata V/s. Estate, 4th Floor, Unit-1, 2, Clive Ghat Street, Kolkata- 700001. PAN:AAACT9353J .. अपीलाथ" /Appellant ""यथ" /Respondent Assessment Year:2005-06 DCIT, Circle-4, M/s. The Right Address बनाम / Aayakar Bhawan, 5th Ltd., Sagar Estate, 4th V/s.…

CIT v. Sakthi Finance Ltd. (352 ITR 102) — Cited in 13 Judgments | BharatTax