State Bank of Travancore v. CIT

158 ITR 102Supreme Court of India1986#401 most cited

What is State Bank of Travancore v. CIT authority for?

Under the mercantile system of accounting, interest income accrues and is taxable in the year it arises, even for "sticky" or doubtful loans, as the right to receive the income is paramount, not its actual receipt, provided there is an agreement for payment.

222

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 1999 to 2026.

Also referred to as

State Bank of Travancore v CIT · 158 ITR 102 · 24 Taxmann 337 · mercantile system of accounting · accrual of interest · sticky loans · doubtful debts · right to receive income · Section 145 · Section 36(1)(vii) · Section 36(1)(viia)

Also reported as

24 Taxmann 337

Sections most often in play

Section 143(3)Section 14ASection 37(1)Section 115JBSection 36(1)(vii)Section 147Section 36(1)(viia)Section 10(34)
Read the full judgment

Issues it is cited on

section 41(4)right to receivesection 36(1)(viia)interest on securitiesmercantile system of accountingsection 36(1)(vii)profits and gains of business or professionrevenue expendituresection 145section 36(1)section 28section 36

Judgments citing State Bank of Travancore v. CIT

Sri V.N.K.Memon, Bellary District vs. Principal Commissioner of Income Tax, Gulbarga

In the result, the appeal filed by the assessee is allowed

ITA 157/BANG/2017[2012-13]Status: DisposedITAT Bangalore15 Mar 2019AY 2012-13

Bench: Shri Arun Kumar Garodia & Shri Laliet Kumarassessment Year : 2012-13 Shri V.N.K. Memon, The Assistant Khb Colony, Commissioner Of Sandur, Vs. Income Tax, Bellary District. Circle – 1, Pan: Agxpm5124G Bellary. Appellant Respondent

For Appellant: Shri B.S. Balachandran, AdvocateFor Respondent: Shri Muzaffar Hussain, CIT (DR)
Section 143(3)Section 263

…pex Court laid down in the cases of CIT vs. ShoorjiVallabhdas& Co. (46 ITR 144), CIT vs. Birla Gwalior (P) Ltd. (89 ITR 266) Poona Electric Supply Co. Ltd. vs. CIT (57 ITR 521), R.B.Jodha Mal Kuthiala vs. CIT (82 ITR 570) and State Bank of Travancore vs. CIT (158 ITR 102). Thus, it is clear that the sale proceeds had accrued to the appellant only by virtue of the order of the Director of Department of Mines and Geology vide proceedings No.DMG/MONCOM/E-Auction/2012-13 dated 03.01.2013. The taxability or otherwise of it can be considered only during the period ending on 31.03.2013, whereas the assessment year befor…

ITO, New Delhi vs. M/S. Paragon Xt, New Delhi

In the result appeal of the revenue is dismissed

ITA 363/DEL/2015[2010-11]Status: DisposedITAT Delhi14 Mar 2019AY 2010-11

Bench: Shri Amit Shukla & Shri L.P. Sahuasstt. Year: 2010-11

For Appellant: NoneFor Respondent: Shri Surender Pal, Sr. DR
Section 194C

…e made to ascertain the nature of business and character of 24 the transaction and the realities and peculiarities of the situations. The decision very heavily relied upon by the first appellate authority in the case of State Bank of Travancore Vs CIT (1986) 158 ITR 102 was subsequently overruled in its land mark decision in the case of UCO Bank Vs CIT 237 ITR 889. In this regard, we place reliance on the ratio laid down by various judicial authorities on the proposition that the income cannot be taxed on hypothetical basis, and it is only the real income that is to be brought to tax. In this behalf, we also rel…

The Thaliparamba Co-Op Urbank Bank Ltd, Taliparamaba vs. The Pr.CIT, Kozhikkode

In the result, the appeal filed by the assessee is allowed

ITA 35/COCH/2018[2013-14]Status: DisposedITAT Cochin13 Mar 2019AY 2013-14

Bench: S/Shri Chandra Poojari, Am & George George K., Jm

Section 143(3)Section 263Section 43D

…1 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI CHANDRA POOJARI, AM & GEORGE GEORGE K., JM I.T.A. No.35/Coch/2018 Assessment Year : 2013-14 The Taliparamba Co-operative Vs. The Income Tax officer, Ward-4, Bank Ltd., Kannur. National Highway, Taliparamba, Kannur. [PAN:AAAAT 7036L] (Assessee-Appellant) (Revenue-Respondent) Assessee by Shri Arun Raj, Adv. Revenue by Smt. A.S. Bindhu, Sr. DR Date of hearing 12/03/2019 Date of pronouncement 13/03/2019 O R D E R Per CHANDRA POOJARI, AM: The appeal filed by the assessee is directed against the order of the CIT, Kozhikode pa…

ACIT, New Delhi vs. M/S. Jain Corporative Bank Ltd., New Delhi

In the result, the appeal of the department stands

ITA 6795/DEL/2015[2012-13]Status: DisposedITAT Delhi28 Jan 2019AY 2012-13

Bench: Shri N.K. Saini & Shri Sudhanshu Srivastavaassessment Year: 2012-13 Acit, Vs M/S Jain Cooperative Bank Ltd., Circle 52(1), 80, Darya Ganj, New Delhi. Delhi-110002 (Pan: Aaaaj0060A) (Appellant) (Respondent) Department By: Shri Sridhar Dora, Sr. Dr Assessee By: None Present Date Of Hearing: 20.11.2018 Date Of Pronouncement: 28.01.2019

For Appellant: None PresentFor Respondent: Shri Sridhar Dora, Sr. DR

…(supra) are quite different. Therefore, ground No.l raised by Revenue deserves to be dismissed. 4.1 The Revenue has further taken ground No.2 by which it has challenged that Ld. CIT(A) has not followed the ratio of case law of State Bank of Travencore Vs CIT 158 ITR 102 (S.C.). 4.2 We have gone through the case law and we find that in that case, accounts of borrowers were debited and interest income was credited to interest suspense account whereas in the present case, the interest on bad loans has not been provided as per RBI guidelines and as per accounting standard 9 issued by Institute of Chartered Accountan…

ACIT, New Delhi vs. M/S. Housing & Urban Development Corporation Ltd., New Delhi

In the result, Assessee’s appeal vide ITA No

ITA 6151/DEL/2014[2007-08]Status: DisposedITAT Delhi21 Dec 2018AY 2007-08

Bench: Shri Amit Shukla & Shri Anadee Nath Misshra

For Appellant: Sh. Gagan Kumar, Adv. &For Respondent: Sh. K.J. Singh, CIT (DR)
Section 143(3)Section 14ASection 263

…Fit for Publication ITA Nos.-5705 & 6151/Del/2014. (AM) (JM) Housing & Urban Development Corporation Ltd. IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘C’: NEW DELHI) BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA No:- 5705/Del/2014 (Assessment Year: 2007-08) M/s Housing & Urban Development Addl. Commissioner of Income Corporation Ltd., Vs. Tax, (HUDCO), Hudco Bhawan, Range-12, New Delhi. Lodhi Road, New Delhi-110003. PAN No: AAACH0632A APPELLANT RESPONDENT ITA No:- 6151/Del/2014 (Assessment Year: 2007-08) ACIT, M/s Housing & Urban Circle 12(1), Vs. Developme…

M/S. Housing & Urban Development Corporation Ltd. (Hudco), New Delhi vs. DCIT, New Delhi

In the result, Assessee’s appeal vide ITA No

ITA 5705/DEL/2014[2007-08]Status: DisposedITAT Delhi21 Dec 2018AY 2007-08

Bench: Shri Amit Shukla & Shri Anadee Nath Misshra

For Appellant: Sh. Gagan Kumar, Adv. &For Respondent: Sh. K.J. Singh, CIT (DR)
Section 143(3)Section 14ASection 263

…Fit for Publication ITA Nos.-5705 & 6151/Del/2014. (AM) (JM) Housing & Urban Development Corporation Ltd. IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘C’: NEW DELHI) BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA No:- 5705/Del/2014 (Assessment Year: 2007-08) M/s Housing & Urban Development Addl. Commissioner of Income Corporation Ltd., Vs. Tax, (HUDCO), Hudco Bhawan, Range-12, New Delhi. Lodhi Road, New Delhi-110003. PAN No: AAACH0632A APPELLANT RESPONDENT ITA No:- 6151/Del/2014 (Assessment Year: 2007-08) ACIT, M/s Housing & Urban Circle 12(1), Vs. Developme…

M/S Rajesh Exports Limited, Bangalore vs. The Assistant Commissioner of Income Tax Central Circle-1(2), Bangalore

In the result, all these seven appeals are partly allowed in the terms indicated above

ITA 176/BANG/2018[2014-15]Status: DisposedITAT Bangalore27 Nov 2018AY 2014-15

Bench: Shri Sunil Kumar Yadav & Shri A. K. Garodia

For Appellant: Shri. Rajesh Mehta, Director
Section 10Section 10ASection 132(1)Section 153Section 153ASection 1O

…o years i.e. Accounting year ended on 31.03.2011 & 31.03.2012, it has to be ascertained that the interest income has really accrued by applying real income theory as approved by Hon'ble apex court in the case of State Bank of Travancore vs. CIT as reported in 158 ITR 102. In this case, it was held that the concept of reality of the income and the actuality of the situation are relevant factors which go to the making up of the accrual of income but once accrual takes place and income accrues, the same cannot be defeated by any theory of real income. The concept of real income may have to be given precedence in com…

M/S Rajesh Exports Limited, Bangalore vs. The Assistant Commissioner of Income Tax Central Circle-1(2), Bangalore

In the result, all these seven appeals are partly allowed in the terms indicated above

ITA 175/BANG/2018[2013-14]Status: DisposedITAT Bangalore27 Nov 2018AY 2013-14

Bench: Shri Sunil Kumar Yadav & Shri A. K. Garodia

For Appellant: Shri. Rajesh Mehta, Director
Section 10Section 10ASection 132(1)Section 153Section 153ASection 1O

…o years i.e. Accounting year ended on 31.03.2011 & 31.03.2012, it has to be ascertained that the interest income has really accrued by applying real income theory as approved by Hon'ble apex court in the case of State Bank of Travancore vs. CIT as reported in 158 ITR 102. In this case, it was held that the concept of reality of the income and the actuality of the situation are relevant factors which go to the making up of the accrual of income but once accrual takes place and income accrues, the same cannot be defeated by any theory of real income. The concept of real income may have to be given precedence in com…

M/S Rajesh Exports Limited, Bangalore vs. The Assistant Commissioner of Income Tax Central Circle-1(2), Bangalore

In the result, all these seven appeals are partly allowed in the terms indicated above

ITA 174/BANG/2018[2012-13]Status: DisposedITAT Bangalore27 Nov 2018AY 2012-13

Bench: Shri Sunil Kumar Yadav & Shri A. K. Garodia

For Appellant: Shri. Rajesh Mehta, Director
Section 10Section 10ASection 132(1)Section 153Section 153ASection 1O

…o years i.e. Accounting year ended on 31.03.2011 & 31.03.2012, it has to be ascertained that the interest income has really accrued by applying real income theory as approved by Hon'ble apex court in the case of State Bank of Travancore vs. CIT as reported in 158 ITR 102. In this case, it was held that the concept of reality of the income and the actuality of the situation are relevant factors which go to the making up of the accrual of income but once accrual takes place and income accrues, the same cannot be defeated by any theory of real income. The concept of real income may have to be given precedence in com…

M/S. Rajesh Exports Limited, Bengaluru vs. The Assistant Commissioner of Income Tax, Central Circle - 1(2), Bengaluru

In the result, all these seven appeals are partly allowed in the terms indicated above

ITA 931/BANG/2017[2008 - 09]Status: DisposedITAT Bangalore27 Nov 2018

Bench: Shri Sunil Kumar Yadav & Shri A. K. Garodia

For Appellant: Shri. Rajesh Mehta, Director
Section 10Section 10ASection 132(1)Section 153Section 153ASection 1O

…o years i.e. Accounting year ended on 31.03.2011 & 31.03.2012, it has to be ascertained that the interest income has really accrued by applying real income theory as approved by Hon'ble apex court in the case of State Bank of Travancore vs. CIT as reported in 158 ITR 102. In this case, it was held that the concept of reality of the income and the actuality of the situation are relevant factors which go to the making up of the accrual of income but once accrual takes place and income accrues, the same cannot be defeated by any theory of real income. The concept of real income may have to be given precedence in com…

M/S Rajesh Exports Limited, Bangalore vs. The Assistant Commissioner of Income Tax Central Circle-1(2), Bangalore

In the result, all these seven appeals are partly allowed in the terms indicated above

ITA 930/BANG/2017[2011-12]Status: DisposedITAT Bangalore27 Nov 2018AY 2011-12

Bench: Shri Sunil Kumar Yadav & Shri A. K. Garodia

For Appellant: Shri. Rajesh Mehta, Director
Section 10Section 10ASection 132(1)Section 153Section 153ASection 1O

…o years i.e. Accounting year ended on 31.03.2011 & 31.03.2012, it has to be ascertained that the interest income has really accrued by applying real income theory as approved by Hon'ble apex court in the case of State Bank of Travancore vs. CIT as reported in 158 ITR 102. In this case, it was held that the concept of reality of the income and the actuality of the situation are relevant factors which go to the making up of the accrual of income but once accrual takes place and income accrues, the same cannot be defeated by any theory of real income. The concept of real income may have to be given precedence in com…

M/S Rajesh Exports Limited, Bangalore vs. The Assistant Commissioner of Income Tax Central Circle-1(2), Bangalore

In the result, all these seven appeals are partly allowed in the terms indicated above

ITA 929/BANG/2017[2010-11]Status: DisposedITAT Bangalore27 Nov 2018AY 2010-11

Bench: Shri Sunil Kumar Yadav & Shri A. K. Garodia

For Appellant: Shri. Rajesh Mehta, Director
Section 10Section 10ASection 132(1)Section 153Section 153ASection 1O

…o years i.e. Accounting year ended on 31.03.2011 & 31.03.2012, it has to be ascertained that the interest income has really accrued by applying real income theory as approved by Hon'ble apex court in the case of State Bank of Travancore vs. CIT as reported in 158 ITR 102. In this case, it was held that the concept of reality of the income and the actuality of the situation are relevant factors which go to the making up of the accrual of income but once accrual takes place and income accrues, the same cannot be defeated by any theory of real income. The concept of real income may have to be given precedence in com…

M/S Rajesh Exports Limited, Bangalore vs. The Assistant Commissioner of Income Tax Central Circle-1(2), Bangalore

In the result, all these seven appeals are partly allowed in the terms indicated above

ITA 928/BANG/2017[2009-10]Status: DisposedITAT Bangalore27 Nov 2018AY 2009-10

Bench: Shri Sunil Kumar Yadav & Shri A. K. Garodia

For Appellant: Shri. Rajesh Mehta, Director
Section 10Section 10ASection 132(1)Section 153Section 153ASection 1O

…o years i.e. Accounting year ended on 31.03.2011 & 31.03.2012, it has to be ascertained that the interest income has really accrued by applying real income theory as approved by Hon'ble apex court in the case of State Bank of Travancore vs. CIT as reported in 158 ITR 102. In this case, it was held that the concept of reality of the income and the actuality of the situation are relevant factors which go to the making up of the accrual of income but once accrual takes place and income accrues, the same cannot be defeated by any theory of real income. The concept of real income may have to be given precedence in com…

ACIT, New Delhi vs. Sh. Chittranjan Dua, New Delhi

In the result, whereas appeal of the revenue is dismissed, appeal of the assessee is allowed

ITA 5884/DEL/2015[2011-12]Status: DisposedITAT Delhi29 Oct 2018AY 2011-12

Bench: Shri G.D. Agarwal & Shri K.Narasimha Charyassessment Year: 2011-12 Acit, Circle 61(1), Vs Shri Chittranjan Dua, New Delhi 88, Sunder Nagar,New Delhi. Pqa: Aacpj6311R Assessment Year: 2011-12 Shri Chittranjan Dua, Vs Acit, Circle 61(1), 88, Sunder Nagar, New Delhi New Delhi. Pqa: Aacpj6311R Appellant Respondent Assessee By S/Shri Pradeep Dinodia, Ca & R.K. Kapoor, Ca Revenue By Shri B.S. Anant, Sr.Dr Date Of Hearing 3.10.2018 Date Of Pronouncement 29.10.2018

…see and if in a given circumstance, the assessee decides to forego any income on justifiable grounds, there does not arise any question of bringing to tax any such notional income. The real income theory stated in the case of State Bank of Travancore vs. CIT, 158 ITR 102, 154 (SC), is that whether an accrual has taken place or not has to be judged in appropriate cases on the principle of real income. In view of the settled proposition of law, what has to be 11 seen is that whether the assessee had foregone any income for justifiable reasons as a prudent man or not. 17. Learned CIT(A) in the impugned order recorde…

Mr. Chittranjan Dua, New Delhi vs. ACIT, New Delhi

In the result, whereas appeal of the revenue is dismissed, appeal of the assessee is allowed

ITA 5803/DEL/2015[2011-12]Status: DisposedITAT Delhi29 Oct 2018AY 2011-12

Bench: Shri G.D. Agarwal & Shri K.Narasimha Charyassessment Year: 2011-12 Acit, Circle 61(1), Vs Shri Chittranjan Dua, New Delhi 88, Sunder Nagar,New Delhi. Pqa: Aacpj6311R Assessment Year: 2011-12 Shri Chittranjan Dua, Vs Acit, Circle 61(1), 88, Sunder Nagar, New Delhi New Delhi. Pqa: Aacpj6311R Appellant Respondent Assessee By S/Shri Pradeep Dinodia, Ca & R.K. Kapoor, Ca Revenue By Shri B.S. Anant, Sr.Dr Date Of Hearing 3.10.2018 Date Of Pronouncement 29.10.2018

…see and if in a given circumstance, the assessee decides to forego any income on justifiable grounds, there does not arise any question of bringing to tax any such notional income. The real income theory stated in the case of State Bank of Travancore vs. CIT, 158 ITR 102, 154 (SC), is that whether an accrual has taken place or not has to be judged in appropriate cases on the principle of real income. In view of the settled proposition of law, what has to be 11 seen is that whether the assessee had foregone any income for justifiable reasons as a prudent man or not. 17. Learned CIT(A) in the impugned order recorde…

ACIT, New Delhi vs. M/S. Jain Co-Operative Bank Ltd., New Delhi

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

ITA 4538/DEL/2015[2011-12]Status: DisposedITAT Delhi24 Oct 2018AY 2011-12

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

For Appellant: NoneFor Respondent: Smt. Ranu Mukherjee, Sr. DR
Section 142(1)Section 154

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C”: NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA No. 4538/Del/2015 Asstt. Year: 2011-12 ACIT, Circle-52 (1), M/s. Jain Co-operative Bank Ltd. New Delhi. 80, Darya Ganj, New Delhi — 110 002 PAN AAAAJOO60A (Appellant) (Respondent) Assessee by: None Department by : | Smt. Ranu Mukherjee, Sr. DR Date of Hearing | 22/10/2018 Date of /10/2018 | pronouncement ORDER PER L.P. SAHU, A.M This is an appeal filed by the revenue against the order passed by Ld. CIT(A) u/s 154 r.w.s 250 of the Income Tax Act 1961 dated 10.4.201…

Dy. C.I.T.2(1), Raipur (Cg) vs. Shri Taral Modi, Raipur (Cg)

In the result, appeal filed by the revenue is dismissed

ITA 314/BIL/2014[2006-07]Status: DisposedITAT Raipur12 Oct 2018AY 2006-07

Bench: Shri R. K. Panda & Ms. Suchitra Kambleassessment Year : 2006-07 Dcit- 2(1), Abhishek Atlani, Raipur (Cg). Atlani Bunglow, Khamardih Road, Vs. Shankar Nagar, Raipur (Cg).

For Appellant: Shri R. B. Doshi, CAFor Respondent: Shri R. K. Singh, CIT-DR
Section 132Section 142(1)Section 153C

…there is no question of holding the same as sales consideration giving rise to capital gain. It is only the real income which gets charged as income under the Income-tax Act as pointed out by the Hon'ble Supreme Court in State Bank of Travancore v. CIT (1986) 158 ITR 102 (SC) later superseded by the decision in UCO Bank v. CIT (1999) 237 ITR 889 (SC) the concept of real income has certainly to be applied in judging what the assessee has received is income or not. Even if a credit entry is made in the account books, it may well be a hypothetical income. 1f it is not real income, the mere entry would not create lia…

Dy. C.I.T.2(1), Raipur (Cg) vs. Shri Suresh Atlani, Raipur (Cg)

In the result, appeal filed by the revenue is dismissed

ITA 186/BIL/2014[2006-07]Status: DisposedITAT Raipur12 Oct 2018AY 2006-07

Bench: Shri R. K. Panda & Ms. Suchitra Kambleassessment Year : 2006-07 Dcit- 2(1), Abhishek Atlani, Raipur (Cg). Atlani Bunglow, Khamardih Road, Vs. Shankar Nagar, Raipur (Cg).

For Appellant: Shri R. B. Doshi, CAFor Respondent: Shri R. K. Singh, CIT-DR
Section 132Section 142(1)Section 153C

…there is no question of holding the same as sales consideration giving rise to capital gain. It is only the real income which gets charged as income under the Income-tax Act as pointed out by the Hon'ble Supreme Court in State Bank of Travancore v. CIT (1986) 158 ITR 102 (SC) later superseded by the decision in UCO Bank v. CIT (1999) 237 ITR 889 (SC) the concept of real income has certainly to be applied in judging what the assessee has received is income or not. Even if a credit entry is made in the account books, it may well be a hypothetical income. 1f it is not real income, the mere entry would not create lia…

Dy. C.I.T.2(1), Raipur (Cg) vs. Abhishek Atlani, Raipur (Cg)

In the result, appeal filed by the revenue is dismissed

ITA 185/BIL/2014[2006-07]Status: DisposedITAT Raipur12 Oct 2018AY 2006-07

Bench: Shri R. K. Panda & Ms. Suchitra Kambleassessment Year : 2006-07 Dcit- 2(1), Abhishek Atlani, Raipur (Cg). Atlani Bunglow, Khamardih Road, Vs. Shankar Nagar, Raipur (Cg).

For Appellant: Shri R. B. Doshi, CAFor Respondent: Shri R. K. Singh, CIT-DR
Section 132Section 142(1)Section 153C

…there is no question of holding the same as sales consideration giving rise to capital gain. It is only the real income which gets charged as income under the Income-tax Act as pointed out by the Hon'ble Supreme Court in State Bank of Travancore v. CIT (1986) 158 ITR 102 (SC) later superseded by the decision in UCO Bank v. CIT (1999) 237 ITR 889 (SC) the concept of real income has certainly to be applied in judging what the assessee has received is income or not. Even if a credit entry is made in the account books, it may well be a hypothetical income. 1f it is not real income, the mere entry would not create lia…

Assistant Commissioner of Income Tax, Circle-1(1), Visakhapatnam vs. The Maharaja Co-Operative Urban Bank Limited, Visakhapatnam

In the result, appeals of the revenue are partly allowed for statistical purpose and the cross objections of the assessee are allowed for statistical purpose

ITA 212/VIZ/2018[2013-14]Status: DisposedITAT Visakhapatnam17 Aug 2018AY 2013-14

Bench: Shri V. Durga Rao& Shri D.S. Sunder Singhआयकर अपील सं./I.T.A.No.211 & 212 /Viz/2018 (धििाारण िर्ा/Asst.Years :2012-13 & 2013-14) Asst.Commissioner Of Vs. The Maharaja Co-Operative Income Tax, Urban Bank Ltd. Central Circle-1 49-9-14, Ganta Arcade Visakhapatnam Dwarakanagar Visakhapatnam [Pan : Aaaat4196K] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) Cross Objection Nos. 32 & 33/Viz/2018 Arising Out Of I.T.A.Nos.211 & 212 /Viz/2018 (धििाारण िर्ा/Asst. Years : 2012-13 & 2013-14) The Maharaja Co-Operative Urban Vs. Asst.Commissioner Of Bank Ltd. Income Tax, 49-9-14, Ganta Arcade Central Circle-1 Dwarakanagar Visakhapatnam Visakhapatnam [Pan : Aaaat4196K] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) राजस्व की ओर से/ Revenue By : Shri Deba Kumar Sonowal, Dr निर्ााररती की ओर से/ Assessee By : Shri G.V.N.Hari, Ar सुिवाई की तारीख / Date Of Hearing : 08.08.2018 घोषणा की तारीख/Date Of Pronouncement : 17.08.2018

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Shri Deba Kumar Sonowal, DR
Section 16Section 40

…allowance on the bad loans has to be allowed as per the provisions of Income- tax Act and as per the circulars issued by CBDT from time to time as held by the Hon'ble Supreme Court in the cases of UCO Bank Vs. CIT 237 ITR 889; State Bank of Travancore Vs. CIT 158 ITR 102 and also in the case of Mercantile Bank Ltd Vs. CIT 283 ITR 84. Reliance in this regard is also placed on the decision or Delhi Special Bench in the case or New India Industries Lt 14 ITA Nos.211 & 212/Viz/2018 and CO Nos. 32 & 33/Viz/2018 The Maharaja Cooperative Urban Bank Ltd. Visakhapatnam Vs CLI 18 SOT 51 and jurisdictional Hyderabad Specia…