CIT v. Vasisth Chay Vyapar Ltd.

330 ITR 440High Court2011#830 most cited

What is CIT v. Vasisth Chay Vyapar Ltd. authority for?

Interest income is taxable under the mercantile system of accounting even if it is not actually recovered, provided there is a right to receive it. The decision also touches upon the treatment of bad debts and provisions for doubtful debts under Section 36(1)(viia).

125

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2015 to 2026.

Also referred to as

CIT v. Vasisth Chay Vyapar Ltd · section 145 · mercantile system of accounting · right to receive · section 36(1)(viia) · bad debts · interest income · real income theory · section 43D

Also reported as

196 Taxmann 169238 CTR 142

Sections most often in play

Section 14ASection 1961Section 115JBSection 43DSection 145Section 36(1)(iii)Section 36(1)(vii)Section 36(1)(viia)

Issues it is cited on

section 43dreal income theorysection 36(1)(viia)right to receivesection 45mercantile system of accountingsection 36(1)(vii)section 36(1)(iii)section 41section 43section 30section 36(1)

Judgments citing CIT v. Vasisth Chay Vyapar Ltd.

Aditya Birla Finance Ltd, Mumbai vs. DCIT 2(1)(1), Mumbai

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

ITA 1491/MUM/2018[2013-14]Status: DisposedITAT Mumbai21 May 2019AY 2013-14

Bench: Sri Mahavir Singh, Jm & Sri Nk Pradhan, Am Aayakr Apila Sam./ Ita No. 1490 & 1491/Mum/2018 (Inaqa-Arna Baya- / Assessment Years 2014-15 & 2013-14) Aditya Birla Finance Limited The Dy. Commissioner Of One Indiabulls Center, Tower- Income Tax, Circle 2(1)(1), 18Th Floor, Jupiter Mill Mumbai Compound, 841, Vs. Senapatibapat Marg, Elphinstone Road, Mumbai- 400 013 .. (P`%Yaqaai- / Respondent) (Apilaaqai- / Appellant) स्थायी लेखा िं./Pan No. Aabcb5769M अपीलाथी की ओर े / Appellant By : S/Shri Ronak Doshi & Hadik Nirmal, Ars’ प्रत्यथी की ओर े / Respondent By : Shri B.S. Bist, Dr ुनवाई की तारीख / Date Of Hearing: 09-05-2019 घोषणा की तारीख / Date Of Pronouncement : 21-05-2019

For Appellant: S/shri Ronak Doshi &For Respondent: Shri B.S. Bist, DR
Section 143(3)

…n favour of assessee that interest income on NPAs by NBFC should be recognized on the basis of Cash System of Accounting and not Mercantile System of Accounting. The decision of the Hon'ble High Court of Delhi in the case of CIT Vs. Vasisth Chay Vyapar Ltd., [330 ITR 440] (Delhi), wherein the Hon'ble Delhi High Court has held that where the amount advanced by assessee has become NPA due to precarious financial position of the loanee when the principal amount thus has become doubtful to recover, the assessee was correct to infer that interest income thereon would not accrue. The Hon'ble High Court has further held…

Aditya Birla Finance Ltd, Mumbai vs. DCIT 2(1)(1), Mumbai

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

ITA 1490/MUM/2018[2014-15]Status: DisposedITAT Mumbai21 May 2019AY 2014-15

Bench: Sri Mahavir Singh, Jm & Sri Nk Pradhan, Am Aayakr Apila Sam./ Ita No. 1490 & 1491/Mum/2018 (Inaqa-Arna Baya- / Assessment Years 2014-15 & 2013-14) Aditya Birla Finance Limited The Dy. Commissioner Of One Indiabulls Center, Tower- Income Tax, Circle 2(1)(1), 18Th Floor, Jupiter Mill Mumbai Compound, 841, Vs. Senapatibapat Marg, Elphinstone Road, Mumbai- 400 013 .. (P`%Yaqaai- / Respondent) (Apilaaqai- / Appellant) स्थायी लेखा िं./Pan No. Aabcb5769M अपीलाथी की ओर े / Appellant By : S/Shri Ronak Doshi & Hadik Nirmal, Ars’ प्रत्यथी की ओर े / Respondent By : Shri B.S. Bist, Dr ुनवाई की तारीख / Date Of Hearing: 09-05-2019 घोषणा की तारीख / Date Of Pronouncement : 21-05-2019

For Appellant: S/shri Ronak Doshi &For Respondent: Shri B.S. Bist, DR
Section 143(3)

…n favour of assessee that interest income on NPAs by NBFC should be recognized on the basis of Cash System of Accounting and not Mercantile System of Accounting. The decision of the Hon'ble High Court of Delhi in the case of CIT Vs. Vasisth Chay Vyapar Ltd., [330 ITR 440] (Delhi), wherein the Hon'ble Delhi High Court has held that where the amount advanced by assessee has become NPA due to precarious financial position of the loanee when the principal amount thus has become doubtful to recover, the assessee was correct to infer that interest income thereon would not accrue. The Hon'ble High Court has further held…

DCIT, Circle - 6(1), Kolkata vs. M/S. Gajraj Commercial Pvt. Ltd., Kolkata

In the result, appeal of the revenue is dismissed

ITA 782/KOL/2018[2014-15]Status: DisposedITAT Kolkata26 Apr 2019AY 2014-15

Bench: Sri J. Sudhakar Reddy & Sri S.S. Godara] I.T.A. No. 782/Kol/2018 Assessment Year: 2014-15 Deputy Commissioner Of Income Tax, Circle-6(1), Kolkata.......................…..…..........Appellant Vs. M/S. Gajraj Commercial Pvt. Ltd.…………………………....……………………………………...Respondent 37A, Bentinck Street Room No. 314 Kolkata – 700 001 [Pan : Aadcg 2577 J] Appearances By: Shri Ravi Tulsiyan, Fca, Appeared On Behalf Of The Assessee. Dr. P.K. Srihari, Fca, Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : March 18Th, 2019 Date Of Pronouncing The Order : April 26Th, 2019 O R D E R Per J. Sudhakar Reddy, Am :- This Appeal Filed By The Revenue Is Directed Against The Order Of The Learned Commissioner Of Income Tax (Appeals) - 7, Kolkata, (Ld. Cit(A)) Passed U/S. 250 Of The Income Tax Act, 1961, (The ‘Act’), Dt. 30/01/2018, For The Assessment Year 2014-15. 2. After Hearing Rival Contentions, We Find That The Assessee Is A Non-Banking Financial Corporation (Nbfc) & It Has No Recognised Interest Income From Non- Performing Asset (Npa). The Assessing Officer Calculated Notional Interest @ 12% On The Said Amount Of Rs. 60,76,61,152/- & Added As Income Interest Of Rs.7,29,19,338/- On The Ground That The Same Has Accrued To The Assessee. He Referred To Section 43D Of The Act & Held That As A Nbfc Does Not Fall Within The Purview Of Section 43D Of The Act. He Held That The Interest Income On Sticky Loans Have To Be Recognised On Accrual Basis. On Appeal, The Ld. First Appellate Authority Applied The Real Income Theory & Deleted The Addition. 3. Aggrieved, The Revenue Is In Appeal Before Us.

Section 250Section 43D

…IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘C’ BENCH, KOLKATA [Before Sri J. Sudhakar Reddy, Accountant Member & Sri S.S. Godara, Judicial Member] I.T.A. No. 782/Kol/2018 Assessment Year: 2014-15 Deputy Commissioner of Income Tax, Circle-6(1), Kolkata.......................…..…..........Appellant Vs. M/s. Gajraj Commercial Pvt. Ltd.…………………………....……………………………………...Respondent 37A, Bentinck Street Room No. 314 Kolkata – 700 001 [PAN : AADCG 2577 J] Appearances by: Shri Ravi Tulsiyan, FCA, appeared on behalf of the assessee. Dr. P.K. Srihari, FCA, appearing on behalf of the Revenue. Date of concluding the hearing…

Dycit, New Delhi vs. M/S Bhartiya Samruddhi Finance Ltd., New Delhi

In the result, both the Appeals of the Revenue are

ITA 5828/DEL/2015[2012-13]Status: DisposedITAT Delhi08 Apr 2019AY 2012-13

Bench: Sh. H.S. Sidhu & Shri L.P. Sahu

Section 115JSection 142(1)Section 143(1)Section 143(2)Section 143(3)Section 145

…nding of the Ld. CIT(A) as under:- “3.2 I have gone through the findings in the assessment order and the submission of the appellant’s AR. As per order dated May 19, 2014 of Hon’ble High Court of Delhi in follows:- “As far as the first issue goes, and Anr. 330 ITR 440 (Del.) and DIT 335 ITR 182. As far as the second aspect goes, we notice that the Revenue had succeeded before the ITAT in light of the judgment of the Supreme Court in Southern Technologies Ltd. vs. JCIT 320 ITR 577 (SC). The Revenue is not in appeal in respect of that question. Following the decision in Vasisth Chay Vyapar ltd. (Supra) and…

Dycit, New Delhi vs. M/S Bhartiya Samruddhi Finance Ltd., New Delhi

In the result, both the Appeals of the Revenue are

ITA 5827/DEL/2015[2011-12]Status: DisposedITAT Delhi08 Apr 2019AY 2011-12

Bench: Sh. H.S. Sidhu & Shri L.P. Sahu

Section 115JSection 142(1)Section 143(1)Section 143(2)Section 143(3)Section 145

…nding of the Ld. CIT(A) as under:- “3.2 I have gone through the findings in the assessment order and the submission of the appellant’s AR. As per order dated May 19, 2014 of Hon’ble High Court of Delhi in follows:- “As far as the first issue goes, and Anr. 330 ITR 440 (Del.) and DIT 335 ITR 182. As far as the second aspect goes, we notice that the Revenue had succeeded before the ITAT in light of the judgment of the Supreme Court in Southern Technologies Ltd. vs. JCIT 320 ITR 577 (SC). The Revenue is not in appeal in respect of that question. Following the decision in Vasisth Chay Vyapar ltd. (Supra) and…

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

…PN/2011 dtd. 28.09.2012. ACIT Vs Maharashtra Nagri Sahkari Nanded Bank ITA No.1713/PN/2011 Dated 28.02.2013. 7.4 Though there are diverse views on the issue of interest on NPA accounts of different High courts as in the case of CIT vs Vasisht Chay Vyapar Ltd. 330 ITR 440 wherein the Delhi High Court ruled in favour of the assessee by holding that interest income on NPA is not taxable on accrual basis, the Hon'ble Madras High Court on the other hand in the case of Shakti Finance Ltd. 31 taxmann.com 305 has taken the stand that interest income on NPA is taxable on accrual basis, however, at present as there are no…

ITO, New Delhi vs. M/S. Brahmaputra Capital & Financial Services Ltd., New Delhi

ITA 4792/DEL/2012[2009-10]Status: DisposedITAT Delhi20 Feb 2019AY 2009-10

Bench: Shri H. S. Sidhu & Sh. N. K. Billaiya[A.Y 2008-09]

For Appellant: Smt. Tejasvi Jain, CAFor Respondent: Shri Janasdan Das, Sr. DR

…st on 26th April, 2018. The Court is of the opinion that facially the appeal is covered against the Revenue by the decision of the Division Bench of this Court reported as Commissioner of Income Tax Vs. Vasisth Chay Vyapar Ltd, (2011) 196 Taxman 169 (Delhi) : 330 ITR 440 (Delhi).” 13. Respectfully following the decision of the Hon’ble Jurisdictional High Court in assesses own case we decline to interfere with the finding with the finding of the CIT (A). 14. Both the appeals filed by the assessee are dismissed. The order is pronounced in the open court on 20.02.2019. [H. S. SIDHU] [N.K. BILLAIYA] JUDICIAL M…

ITO, New Delhi vs. M/S. Brahmaputra Capital & Financial Services Ltd., New Delhi

ITA 4791/DEL/2012[2008-09]Status: DisposedITAT Delhi20 Feb 2019AY 2008-09

Bench: Shri H. S. Sidhu & Sh. N. K. Billaiya[A.Y 2008-09]

For Appellant: Smt. Tejasvi Jain, CAFor Respondent: Shri Janasdan Das, Sr. DR

…st on 26th April, 2018. The Court is of the opinion that facially the appeal is covered against the Revenue by the decision of the Division Bench of this Court reported as Commissioner of Income Tax Vs. Vasisth Chay Vyapar Ltd, (2011) 196 Taxman 169 (Delhi) : 330 ITR 440 (Delhi).” 13. Respectfully following the decision of the Hon’ble Jurisdictional High Court in assesses own case we decline to interfere with the finding with the finding of the CIT (A). 14. Both the appeals filed by the assessee are dismissed. The order is pronounced in the open court on 20.02.2019. [H. S. SIDHU] [N.K. BILLAIYA] JUDICIAL M…

M/S. Cliff Scaffoldings Pvt. Ltd., Delhi vs. ITO, New Delhi

The appeal of the assessee is allowed

ITA 4530/DEL/2015[2011-12]Status: DisposedITAT Delhi18 Jan 2019AY 2011-12

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble

Section 10Section 10ASection 143(3)Section 36

…'ble Apex Court held that there can be no manner of doubt that the provision of Special Court Act wherever they are applicable shall prevail over the provision of the income tax Act. The Hon'ble Delhi High Court in the case of CIT vs. Vasisth Chay Vaapar Ltd. 330 ITR 440 held that when there is a provision in another enactment which contains a non obstente clause than that would override the provisions of the Income Ta Act. Thus one will have to consider the implication of section 51 of the SEZ Act. It means that anything inconsistent to the provision of the EZ Act will not be considered. Thus the word service as…

Asst CIT 19(1), Mumbai vs. Deepak Kanwarlal Jain, Mumbai

The appeal stands dismissed in terms of our above order subject to aforesaid verification by Ld

ITA 248/MUM/2017[2012-13]Status: DisposedITAT Mumbai10 Oct 2018AY 2012-13

Bench: Shri Saktijit Dey, Jm & Shri Manoj Kumar Aggarwal, Am आयकरअपीलसं./I.T.A. No.248/Mum/2017 (िनधा"रणवष" / Assessment Year: 2012-13) Assistant Commissioner Of Deepak Kanwarlal Jain Income Tax-19(1) Flat No.B-6, Rock Side Apartment, बनाम/ Room No.203, 2Nd Floor 116, Walkeshwar Road Vs. Matru Mandir, Tardeo Road Mumbai-400 006 Mumbai-400 007 "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aacpj-2057-Q (अपीलाथ"/Appellant) (""थ" / Respondent) :

For Appellant: Suchek Anchaliya, Ld. ARFor Respondent: Ram Tiwari, Ld. DR
Section 10ASection 143(3)

…e Hon’ble Supreme Court in the case of Tax Recovery Officer Vs. Custodian Appointed Under The Special Court, reported in the case of 211 CTR 369 (SC) and the decision of the Hon’ble Delhi High Court in the case of CIT Vs. Vasisth Chay Vyapar Ltd., reported in 238 CTR 142 (Delhi), were also taken into consideration and thereafter it was concluded that in view of the Instruction No.1 of 2006, dated 24-3-2006 as modified by Instruction No.4 of 2006, dated 24-5-2006 issued by the Ministry of Commerce & Industry, Government of India and the definition of service given in the SEZ Act, 2005, which overrides the word ‘se…

DCIT - 1(3)(2), Mumbai vs. Agrasen Urban Co.Op.Bank Ltd., Pune

In the result, the appeal by the Revenue stands dismissed

ITA 2874/MUM/2016[2010-11]Status: DisposedITAT Mumbai03 Oct 2018AY 2010-11

Bench: Shri Shamim Yahya, Am & Shri Sandeep Gosain, Jm

For Appellant: Shri Suhas Bora
Section 119Section 143(3)Section 145Section 45Q

…td. and others (in ITA No. 54 of 2014 and others vide order dated 22.01.2015), the Hon’ble High Court has elaborately considered the same issue and held as under: 9. The Income Tax Appellate Tribunal has reffered the case of M/s. Vasisth Chay Vyapar Limited 330 ITR 440(Delhi). In this case, the reven ue relied upon the decision of the Hon'ble Supreme Court in the case of SouthernTechnologies Ltd. supra. The learned Income Tax AppellateTribunal has reproduced the observations made by the DelhiHigh Court while referring the said case of M/s SouthernTechnologies Limited supra. The assessee herein being a Co operat…

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

…in view of the guidelines issued by the RBI. For the sake of completeness, we proceed to extract the finding given by the High Court and the same reads as under : “9. The Income Tax Appellate Tribunal has referred the case of M/s. Vasisth Chay Vyapar Limited 330 ITR 440 (Delhi). In this case, the revenue relied upon the decision of the Hon’ble Supreme Court in the case of Southern Technologies Ltd. supra. The learned Income Tax Appellate Tribunal has reproduced the observations made by the Delhi High Court while referring the said case of M/s. Southern Technologies Limited supra. The assessee herein being a Co-o…

The Royal Bank of Scotland N.V., Kolkata vs. DCIT, ( International Taxation) Cir-2(1), Kolkata

In the result, the appeals of the assessee are partly allowed for statistical purposes

ITA 36/KOL/2017[2012-13]Status: DisposedITAT Kolkata14 Sept 2018AY 2012-13

Bench: Hon’Ble Shri S.S.Godara, Jm & Shri M.Balaganesh, Am ] I.T.A Nos. 36 & 1885/Kol/2017 Assessment Year : 2012-13 & 2013-14 M/S Royal Bank Of Scotland N.V. -Vs- Dcit (It), Circle-2(1), Kolkata [Pan: Aacca 6818 K] (Appellant) (Respondent)

For Appellant: Shri R. N. Bajoria, ARFor Respondent: Shri G. Mallikarjuna, CIT DR
Section 144C(13)Section 43D

…ld DRP. Aggrieved, the assessee is in appeal before us. 3.5. The ld AR reiterated the submissions made before the lower authorities and placed reliance on the decision of the Hon’ble Delhi High Court in the case of CIT vs Vasisth Chay Vyapar Ltd reported in 330 ITR 440 (Del) on the impugned issue, among others. He argued that this issue is covered in favour of the assesse by the order of this tribunal in assesssee’s own case for the Asst Year 2010-11 in ITA No. 477 & 496/Kol/2015 dated 14.10.2016. In response to this, the ld DR argued that the provisions of Rule 6EA states non-recognition of interest income onl…

The Royal Bank of Scotland N.V., Kolkata vs. DCIT, ( International Taxation) Cir-2(1), Kolkata

In the result, the appeals of the assessee are partly allowed for statistical purposes

ITA 1885/KOL/2017[2013-14]Status: DisposedITAT Kolkata14 Sept 2018AY 2013-14

Bench: Hon’Ble Shri S.S.Godara, Jm & Shri M.Balaganesh, Am ] I.T.A Nos. 36 & 1885/Kol/2017 Assessment Year : 2012-13 & 2013-14 M/S Royal Bank Of Scotland N.V. -Vs- Dcit (It), Circle-2(1), Kolkata [Pan: Aacca 6818 K] (Appellant) (Respondent)

For Appellant: Shri R. N. Bajoria, ARFor Respondent: Shri G. Mallikarjuna, CIT DR
Section 144C(13)Section 43D

…ld DRP. Aggrieved, the assessee is in appeal before us. 3.5. The ld AR reiterated the submissions made before the lower authorities and placed reliance on the decision of the Hon’ble Delhi High Court in the case of CIT vs Vasisth Chay Vyapar Ltd reported in 330 ITR 440 (Del) on the impugned issue, among others. He argued that this issue is covered in favour of the assesse by the order of this tribunal in assesssee’s own case for the Asst Year 2010-11 in ITA No. 477 & 496/Kol/2015 dated 14.10.2016. In response to this, the ld DR argued that the provisions of Rule 6EA states non-recognition of interest income onl…

The Royal Bank of Scotland N.V., Kolkata vs. DCIT, (It) - 2(1), Kolkata

Accordingly, the Ground Nos. (iv) to (vi) raised by the revenue are dismissed

ITA 505/KOL/2016[2011-2012]Status: DisposedITAT Kolkata05 Sept 2018AY 2011-2012

Bench: Hon’Ble Shri Aby. T. Varkey, Jm & Shri M.Balaganesh, Am ] I.T.A No. 503/Kol/2016 Assessment Year : 2011-12 Dcit (It), Circle-2(1), Kolkata -Vs- M/S Royal Bank Of Scotland N.V. [Pan: Aacca 6818 K] (Appellant) (Respondent) I.T.A No. 505/Kol/2016 Assessment Year : 2011-12 M/S Royal Bank Of Scotland N.V. -Vs- Dcit (It), Circle-2(1), Kolkata [Pan: Aacca 6818 K] (Appellant) (Respondent)

For Appellant: Shri R. N. Bajoria, ARFor Respondent: Shri G. Mallikarjuna, CIT DR
Section 144C(13)Section 144C(5)Section 43D

…ld DRP. Aggrieved, the assessee is in appeal before us. 3.5. The ld AR reiterated the submissions made before the lower authorities and placed reliance on the decision of the Hon’ble Delhi High Court in the case of CIT vs Vasisth Chay Vyapar Ltd reported in 330 ITR 440 (Del) on the impugned issue, among others. He argued that this issue is covered in favour of the assesse by the order of this tribunal in assesssee’s own case for the Asst Year 2010-11 in ITA No. 477 & 496/Kol/2015 dated 14.10.2016. In response to this, the ld DR argued that the provisions of Rule 6EA states non-recognition of interest income onl…

DCIT, Cir-2(1), Kolkata vs. M/S Royal Bank of Scotland N.V., Kolkata

Accordingly, the Ground Nos. (iv) to (vi) raised by the revenue are dismissed

ITA 503/KOL/2016[2012-2013]Status: DisposedITAT Kolkata05 Sept 2018AY 2012-2013

Bench: Hon’Ble Shri Aby. T. Varkey, Jm & Shri M.Balaganesh, Am ] I.T.A No. 503/Kol/2016 Assessment Year : 2011-12 Dcit (It), Circle-2(1), Kolkata -Vs- M/S Royal Bank Of Scotland N.V. [Pan: Aacca 6818 K] (Appellant) (Respondent) I.T.A No. 505/Kol/2016 Assessment Year : 2011-12 M/S Royal Bank Of Scotland N.V. -Vs- Dcit (It), Circle-2(1), Kolkata [Pan: Aacca 6818 K] (Appellant) (Respondent)

For Appellant: Shri R. N. Bajoria, ARFor Respondent: Shri G. Mallikarjuna, CIT DR
Section 144C(13)Section 144C(5)Section 43D

…ld DRP. Aggrieved, the assessee is in appeal before us. 3.5. The ld AR reiterated the submissions made before the lower authorities and placed reliance on the decision of the Hon’ble Delhi High Court in the case of CIT vs Vasisth Chay Vyapar Ltd reported in 330 ITR 440 (Del) on the impugned issue, among others. He argued that this issue is covered in favour of the assesse by the order of this tribunal in assesssee’s own case for the Asst Year 2010-11 in ITA No. 477 & 496/Kol/2015 dated 14.10.2016. In response to this, the ld DR argued that the provisions of Rule 6EA states non-recognition of interest income onl…

DCIT, Circle-3(1), Hyd, Hyderabad vs. Share Microfin Ltd., Hyd, Hyderabad

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

ITA 1285/HYD/2015[2011-12]Status: DisposedITAT Hyderabad27 Jul 2018AY 2011-12

Bench: Smt. P. Madhavi Devi & Shri S. Rifaur Rahmanassessment Year: 2011-12 Dcit Vs. Share Microfin Ltd., Circle – 3(1) Hyderabad. Hyderabad. Pan – Aaecs9243C (Applicant) (Respondent) Revenue By : Shri P.V Subbaraju Assessee By : Shri A.G. Sitaraman

For Appellant: Shri A.G. SitaramanFor Respondent: Shri P.V Subbaraju
Section 143(3)

…ard to NPAs should be as per section 45Q of the RBI Act. Following the 7 ITA.No. 1285/Hyd/2015 Share Microfin Ltd., Hyderabad. aforesaid decision of Hon'ble Supreme Court, the Hon'ble Delhi High Court in case of CIT vs. Vasisth Chay Vyapar Ltd., and another (330 ITR 440) held that where even the principal amount itself had become doubtful of recovery it cannot be said that interest thereupon had accrued. The Hon'ble Delhi High Court further held that having regard to the provisions of section 45Q of the RBI and prudential norms issued by the RBI in exercise of its statutory powers where interest was not received…

Assistant Commissioner of Income-Tax vs. Sharad Nagari Sahakari Bank Ltd., Solapur

In the result, appeal of the Revenue is dismissed

ITA 1240/PUN/2016[2012-13]Status: DisposedITAT Pune20 Jul 2018AY 2012-13

Bench: Ms. Sushma Chowla, Jm & Shri D. Karunakara Rao, Am

For Appellant: Shri Achal SharmaFor Respondent: Shri Pramod Shingte
Section 145Section 260ASection 43D

…Vs. M/s. Deogiri Nagari Sahakari Bank Ltd. (supra) decided the issue under consideration in favour of the assessee and against the Revenue by holding as under : “9. The Income Tax Appellate Tribunal has referred the case of M/s. Vasisth Chay Vyapar Limited 330 ITR 440 (Delhi). In this case, the revenue relied upon the decision of the Hon’ble Supreme Court in the case of Southern Technologies Ltd. supra. The learned Income Tax Appellate Tribunal has reproduced the observations made by the Delhi High Court while referring the said case of M/s. Southern Technologies Limited supra. The assessee herein being a Co-o…

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 Pandharpur Merchants Co-Op. Bank Ltd., Solapur

In the result, appeal of the Revenue is dismissed

ITA 1421/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.1421/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 43D

…the provisions of section 43D of the Act and relied on the judgment of Hon’ble Supreme Court in the case of Southern Technologies Ltd. Vs. JCIT (Coimbatore) 320 ITR 577 (SC), judgment of Hon’ble Delhi High Court in the case of M/s. Vasisth Chay Vyapar Ltd. 330 ITR 440 (Delhi) and the decisions of the Tribunal in assessee’s own case for the A.Yrs. 2009-10 and 2010-11 vide ITA Nos. 875/PN/2014 & C.O.No.100/PN/2014, dated 28-11-2014. Eventually, the CIT(A) allowed the claim of the assessee in his favour. On perusing the finding given by the CIT(A) we find it relevant to extract the operational paras and the…