TN Power Finance and Infrastructure Development Corporation Ltd. v. JCIT

280 ITR 491High Court2006#3671 most cited

What is TN Power Finance and Infrastructure Development Corporation Ltd. v. JCIT authority for?

Reserve Bank of India (RBI) guidelines cannot override the statutory provisions of the Income Tax Act. Provisions of the Income Tax Act prevail over RBI directives.

32

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2012 to 2025.

Also referred to as

TN Power Finance and Infrastructure Development Corporation Ltd. v. JCIT · 280 ITR 491 · RBI guidelines · Income Tax Act · statutory provisions · overriding effect

Sections most often in play

Section 37(1)Section 36(1)(viia)Section 36(1)(vii)Section 145Section 28Section 36(2)Section 143(3)Section 144C

Issues it is cited on

section 36(1)(via)section 145(1)section 22(1)section 36(1)(viia)section 10(2)section 36(1)(vii)interest on securitiesright to receivesection 18section 36(2)mercantile system of accountingsection 22

Judgments citing TN Power Finance and Infrastructure Development Corporation Ltd. v. JCIT

Canara Bank vs. Addl.C.I, .T

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

ITA 979/BANG/2013[2009-10]Status: DisposedITAT Bangalore15 Sept 2017AY 2009-10

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri G.Sarangan, Senior Advocate and Shri S.Ananthan, CAFor Respondent: Shri G.R. Reddy, CIT(DR)
Section 143(3)Section 36(1)(vii)

…e had no explanation for the claim. Hence, he disallowed the same. While disallowing the same, the Assessing Officer followed the decision of the Madras High Court in the case of TN Power Finance and Infrastructure Development Corporation Ltd., v. JCIT (2006) 280 ITR 491. Aggrieved, the assessee moved the matter in appeal before the first appellate authority. 05. The learned Commissioner of Income-tax (Appeals) after considering the submissions made before him and following the decision of the Madras High Court cited supra, came to the conclusion that the Hon'ble Madras High Court has that merely because the RBI…

J.C.I.T vs. M/S Canara Bank

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

ITA 1035/BANG/2013[2009-10]Status: DisposedITAT Bangalore15 Sept 2017AY 2009-10

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Shri G.Sarangan, Senior Advocate and Shri S.Ananthan, CAFor Respondent: Shri G.R. Reddy, CIT(DR)
Section 143(3)Section 36(1)(vii)

…e had no explanation for the claim. Hence, he disallowed the same. While disallowing the same, the Assessing Officer followed the decision of the Madras High Court in the case of TN Power Finance and Infrastructure Development Corporation Ltd., v. JCIT (2006) 280 ITR 491. Aggrieved, the assessee moved the matter in appeal before the first appellate authority. 05. The learned Commissioner of Income-tax (Appeals) after considering the submissions made before him and following the decision of the Madras High Court cited supra, came to the conclusion that the Hon'ble Madras High Court has that merely because the RBI…

DCIT, Chennai vs. Shriram City Union Finance Co. Ltd., Chennai

In the result, the appeal of the assessee and the revenue are partly allowed

ITA 726/CHNY/2016[2012-13]Status: DisposedITAT Chennai07 Jun 2017AY 2012-13

Bench: Shri N.R.S. Ganesan & Shri D.S.Sunder Singhआयकर अपील सं./Ita No.506/Mds/2016 "नधा+रण वष+ /Assessment Year: 2012-13

For Respondent: Mr.R.Sivaraman, Adv
Section 37Section 45

…e directive of RBI cannot override the statutory provisions of the Income Tax Act. The following case laws support this claim: The Honourable Madras High Court in the case of Tamil Nadu Power Finance and infrastructure Development Corporation Ltd., vs. JCIT (280 ITR 491) has held that - “...merely because the Reserve Bank of India has directed the assessee to provide for non-performing assets, that direction cannot override the mandatory provisions of the Income Tax Act contained in section 36(1) (viia) which stipulate for deduction not exceeding 5 percent, of the total income only in respect of the provision f…

Shriram City Union Finance Ltd., Chennai vs. DCIT, Chennai

In the result, the appeal of the assessee and the revenue are partly allowed

ITA 506/CHNY/2016[2012-2013]Status: DisposedITAT Chennai07 Jun 2017AY 2012-2013

Bench: Shri N.R.S. Ganesan & Shri D.S.Sunder Singhआयकर अपील सं./Ita No.506/Mds/2016 "नधा+रण वष+ /Assessment Year: 2012-13

For Respondent: Mr.R.Sivaraman, Adv
Section 37Section 45

…e directive of RBI cannot override the statutory provisions of the Income Tax Act. The following case laws support this claim: The Honourable Madras High Court in the case of Tamil Nadu Power Finance and infrastructure Development Corporation Ltd., vs. JCIT (280 ITR 491) has held that - “...merely because the Reserve Bank of India has directed the assessee to provide for non-performing assets, that direction cannot override the mandatory provisions of the Income Tax Act contained in section 36(1) (viia) which stipulate for deduction not exceeding 5 percent, of the total income only in respect of the provision f…

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)

…s ‘Held as maturity’ are permanent long term investment made b y the assessee bank, which are predominantly capital in nature. Ratio of the decision of Hon’ble Madras High Court judgment in TN Power Finance & Infrastructure Development Corpn.Ltd Vs JCIT(2006) 280 ITR 491 (Mad.) wherein, it is held that RBI guidelines cannot override the mandatory provisions of income tax, is applicable in this case. 9.1 The ld. CIT(A) has erred in deleting the addition made in respect of disallowance of provisions for non- performing assets and standard assets. The ld.CIT(A) failed to appreciate the fact that and the provision f…

Assistant Commissioner of Income Tax, Tumkur vs. M/S Tumkur Veerashiva Co.Operative Bank Ltd, Tumkur

In the result, the Revenue appeal is partly allowed for statistical purpose

ITA 1174/BANG/2014[2010-11]Status: DisposedITAT Bangalore16 Oct 2015AY 2010-11

Bench: Shri Vijaypal Rao & Shri G Manjunathathe Asst. Commissioner Of Income-Tax, Circle-1, Tumkur. . Appellant Vs. M/S Tumkur Veerashiva Co-Operative Bank Ltd., Dr. Radhkrishna Road, Ss Puram, Tumkur. . Respondent Appellant By : Shri Pk Srihari, Addl. Cit, Respondent By : Shri None Date Of Hearing : 08-10-2015 Date Of Pronouncement : 16-10-2015 O R D E R

For Appellant: Shri PK Srihari, Addl. CITFor Respondent: Shri None
Section 142(1)Section 143(2)Section 143(3)Section 37

…his contention, he relied upon the Judgments of Hon’ble Supreme Court in the case of Vijaya bank vs CIT, 187 ITR 541 (SC) and Hon’ble Madras High Court decision in the case of T.N. Power Finance and Infrastructure Development Corporation Ltd vs JCIT (2006) 280 ITR 491 (Mad). 13. Aggrieved by the assessment order, the assessee preferred an appeal before CIT(A). The Ld. CIT(A) after considering the submissions of the assessee and also relied upon the Co-ordinate bench decision in ITA.No. 1122/B/2010 of Sir.M.Visweswaraya Co- op Bank Ltd., Vs. JCIT, held that the assessee is eligible for deduction for amortis…

Bank of Ceylon, Chennai vs. DDIT, Chennai

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

ITA 518/CHNY/2015[2010-11]Status: DisposedITAT Chennai16 Apr 2015AY 2010-11

Bench: Shri Chandra Poojari & Shri Duvvuru Rl Reddyआयकर अपील सं./I.T.A.No.518/Mds/2015 "नधा"रण वष"/Assessment Year:2010-11 M/S. Bank Of Ceylon , The Deputy Director Of 20/21, Casa Major Road, Vs. Income Tax, New No.2, Zerart Garden Ii Lane, International Taxation I, Egmore, Chennai 600 008. Chennai 600 034. [Pan: Aaacb2218C] (अपीलाथ" /Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से / Appellant By : Shri V.S. Jayakumar, Advocate Shri S. Ganapathi Subramanian, Ca ""यथ" क" ओर से/Respondent By : Dr. B. Nischal, Jcit सुनवाई क" तार"ख/ Date Of Hearing : 29.02.2016 घोषणा क" तार"ख /Date Of Pronouncement : 06.05.2016 आदेश /O R D E R Per Duvvuru Rl Reddy:

For Appellant: Shri V.S. Jayakumar, AdvocateFor Respondent: Dr. B. Nischal, JCIT
Section 143(3)Section 36(1)(viia)

…ecovery of the loan becomes impossible. Thus it may possible that all the bad debts may be non-performing assets (NPAs), all the NPAs are not necessarily the bad debts. 8.3 In T.N. Power Finance & Infrastructure Development Corporation Ltd. vs. Jt. CIT (2006) 280 ITR 491 (Mad), assessee engaged in the business of long-term finance for infrastructure development. The company had made provision for non- performing assets as per directives of Reserve Bank of India and had debited the said provision to profit and loss account and had claimed deduction as bad debt. It was held the mere provision was 10 I.T.A. No.518/M…

DCIT vs. Ing Vysya Bank, Bangalore

In the result, appeal by the Assessee is partly allowed while the 68

ITA 318/BANG/2013[2005-06]Status: DisposedITAT Bangalore06 Feb 2015AY 2005-06

Bench: Shri N.V. Vasudevan & Shri Abraham P. Georgeassessment Year : 2005-06 M/S. Ing Vysya Bank Ltd., Vs. The Assistant Commissioner Of Ing Vysya House, Income Tax, No.22, M.G. Road, Circle 11(4), Bangalore – 560 001. Bangalore. Pan: Aabct 0529M Appellant Respondent Assessment Year : 2005-06 The Deputy Commissioner Of Vs. M/S. Ing Vysya Bank Ltd., Income Tax, Bangalore – 560 001. Circle 11(4), Pan: Aabct 0529M Bangalore. Appellant Respondent Assessee By : Shri S. Ananthan, C.A. Revenue By : Shri C.H. Sundar Rao, Cit-I(Dr) Date Of Hearing : 20.01.2015 Date Of Pronouncement : 06.02.2015 O R D E R Per N.V. Vasudevan

For Appellant: Shri S. Ananthan, C.AFor Respondent: Shri C.H. Sundar Rao, CIT-I(DR)
Section 1Section 10Section 234D

…e had no explanation for the claim. Hence, he disallowed the same. While disallowing the same, the Assessing Officer followed the decision of the Madras High Court in the case of TN Power Finance and Infrastructure Development Corporation Ltd., v. JCIT (2006) 280 ITR 491. Aggrieved, the assessee moved the matter in appeal before the first appellate authority. 05. The learned Commissioner of Income-tax (Appeals) after considering the submissions made before him and following the decision of the Madras High Court cited supra, came to the conclusion that the Hon'ble Madras High Court has that merely because the RBI…

Ing Vysya Bank Ltd vs. ACIT, Bangalore

In the result, appeal by the Assessee is partly allowed while the 68

ITA 288/BANG/2013[2005-06]Status: DisposedITAT Bangalore06 Feb 2015AY 2005-06

Bench: Shri N.V. Vasudevan & Shri Abraham P. Georgeassessment Year : 2005-06 M/S. Ing Vysya Bank Ltd., Vs. The Assistant Commissioner Of Ing Vysya House, Income Tax, No.22, M.G. Road, Circle 11(4), Bangalore – 560 001. Bangalore. Pan: Aabct 0529M Appellant Respondent Assessment Year : 2005-06 The Deputy Commissioner Of Vs. M/S. Ing Vysya Bank Ltd., Income Tax, Bangalore – 560 001. Circle 11(4), Pan: Aabct 0529M Bangalore. Appellant Respondent Assessee By : Shri S. Ananthan, C.A. Revenue By : Shri C.H. Sundar Rao, Cit-I(Dr) Date Of Hearing : 20.01.2015 Date Of Pronouncement : 06.02.2015 O R D E R Per N.V. Vasudevan

For Appellant: Shri S. Ananthan, C.AFor Respondent: Shri C.H. Sundar Rao, CIT-I(DR)
Section 1Section 10Section 234D

…e had no explanation for the claim. Hence, he disallowed the same. While disallowing the same, the Assessing Officer followed the decision of the Madras High Court in the case of TN Power Finance and Infrastructure Development Corporation Ltd., v. JCIT (2006) 280 ITR 491. Aggrieved, the assessee moved the matter in appeal before the first appellate authority. 05. The learned Commissioner of Income-tax (Appeals) after considering the submissions made before him and following the decision of the Madras High Court cited supra, came to the conclusion that the Hon'ble Madras High Court has that merely because the RBI…

Punjab & Sind Bank vs. Commissioner of Income Tax V& Anr

The appeals are disposed of in the aforesaid terms with no order as to

ITA/660/2009HC Delhi12 Sept 2012

Bench: CASES PERTAINING TO SPL.DIVISION BENCHES

Section 143(3)Section 154

…income tax. When the investments are sold whatever may be capital or loss will be determined as per the provisions of Income Tax Act. Hon‟ble Madras High Court in the case of TN Power Financial & Infrastructure Development Corporation Ltd. v. Joint CIT 280 ITR 491 held that RBI guidelines cannot over-ride statutory provisions of Income Tax Act, 1961. Therefore, contention of assessee that assessee‟s cases is covered by ITAT order for assessment year 1975-76 is no longer applicable. Moreover, in assessment year 1975-76 it was held that change in the method of valuation of stock and security to comp…

Punjab & Sind Bank vs. Commissioner of Income Tax V & Anr

The appeals are disposed of in the aforesaid terms with no order as to

ITA - 634 / 2009HC Delhi12 Sept 2012
Section 143(3)Section 154

…income tax. When the investments are sold whatever may be capital or loss will be determined as per the provisions of Income Tax Act. Hon‟ble Madras High Court in the case of TN Power Financial & Infrastructure Development Corporation Ltd. v. Joint CIT 280 ITR 491 held that RBI guidelines cannot over-ride statutory provisions of Income Tax Act, 1961. Therefore, contention of assessee that assessee‟s cases is covered by ITAT order for assessment year 1975-76 is no longer applicable. Moreover, in assessment year 1975-76 it was held that change in the method of valuation of stock and security to comp…

Punjab and Sind Bank

The appeals are disposed of in the aforesaid terms with no order as to

ITA/634/2009HC Delhi12 Sept 2012
Section 143(3)Section 154

…income tax. When the investments are sold whatever may be capital or loss will be determined as per the provisions of Income Tax Act. Hon‟ble Madras High Court in the case of TN Power Financial & Infrastructure Development Corporation Ltd. v. Joint CIT 280 ITR 491 held that RBI guidelines cannot over-ride statutory provisions of Income Tax Act, 1961. Therefore, contention of assessee that assessee‟s cases is covered by ITAT order for assessment year 1975-76 is no longer applicable. Moreover, in assessment year 1975-76 it was held that change in the method of valuation of stock and security to comp…