Which cases are most cited on Section 43D?

CIT v. Vasisth Chay Vyapar Ltd. (330 ITR 440) — 125 citing judgments; CIT v. Vasisth Chay Vyapar Ltd. (410 ITR 244) — 63 citing judgments; Bank of Rajasthan Ltd. v. Commissioner of Income Tax (2024 SCC OnLine SC 2877) — 21 citing judgments; American Express Bank Ltd. v. Addl. CIT (25 Taxmann.com 572) — 15 citing judgments; DIT v. American Express Bank Ltd. (235 Taxmann 85) — 11 citing judgments.

How many judgments are there on Section 43D?

BharatTax indexes 155 ITAT, High Court and Supreme Court judgments that turn on Section 43D of the Income Tax Act, 1961.

Section 43D of the Income Tax Act

Q: What is the leading case on Section 43D of the Income Tax Act?

CIT v. Vasisth Chay Vyapar Ltd. (330 ITR 440) is the decision most relied on for Section 43D, cited in 125 judgments. 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).

Income-tax Act, 2025: s.56

Section 43D of the Income-tax Act, 1961 corresponds to section 56 (Special provision in case of interest income of specified financial institutions) of the Income-tax Act, 2025.

Read section 56 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 43D is CIT v. Vasisth Chay Vyapar Ltd. (330 ITR 440), cited in 125 of the 155 judgments on BharatTax that turn on this section.

Leading authorities on Section 43D

CIT v. Vasisth Chay Vyapar Ltd.

330 ITR 440 · 2011 · High Court

125

citing judgments

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).

CIT v. Vasisth Chay Vyapar Ltd.

410 ITR 244 · 2019 · Supreme Court

citing judgments

Bank of Rajasthan Ltd. v. Commissioner of Income Tax

2024 SCC OnLine SC 2877 · 2024 · Reported

citing judgments

Banks can claim tax deductions for broken period interest on Held to Maturity (HTM) government securities if classified as stock-in-trade, treating it as revenue expenditure, not capital expenditure.

American Express Bank Ltd. v. Addl. CIT

25 Taxmann.com 572 · 2012 · Reported

citing judgments

Unpaid interest on loans where principal/interest remained unpaid for 90 days, classified as non-accrual loans, when reversed to a Reserve for Doubtful Interest (RFDI) account, and subsequent interest accruals credited to RFDI instead of the profit and loss account, is taxable on a net basis of accruals less recoveries.

DIT v. American Express Bank Ltd.

235 Taxmann 85 · 2015 · High Court

citing judgments

M/S Novozymes South Asia Put Ltd. v. ACIT

168 ITD 529 · 2018 · ITAT

citing judgments

The ITAT Mumbai in M/S Novozymes South Asia Put Ltd. v. ACIT (2018) has allowed employee stock option plans (ESOPs) as a deduction, recognizing them as an effective tool for employee reward and retention.

Kerala Road Transport Corporation v. ITO

34 TTJ 101 · ITAT

citing judgments

(2) CIT Vs Vasisth Chay Vyapar Ltd, 330 ITR 440 (Delhi), 2011 (3) DIT v. Brahmaputra Capital Financial Services Ltd.

335 ITR 182 · 2011 · High Court

citing judgments

Karnavati Co-op. Bank Ltd. v. DCIT

134 ITD 486 · 2012 · ITAT

citing judgments

Judgments on Section 43D

DCIT, Jabalpur vs. Jila Sahkari Kendriya Bank Maryadit, Seoni

The appeal is partly allowed for statistical purposes

ITA 161/JAB/2024[2016-17]Status: DisposedITAT Jabalpur22 Sept 2026AY 2016-17

Bench: Hon’Ble Shri Kul Bharat & Shri G.D. Padmahshali

For Appellant: Mr Bhaskar Ganguly [‘Ld. AR’]For Respondent: Mr Dhananjay Wanjari [‘Ld. DR’]

Section 143(3)Section 246ASection 250Section 253(2)Section 36(1)(via)Section 37Section 40Section 40A(7)Section 43D

Income Tax Officer, Ward-Parwanoo, Parwanoo vs. Jogindra Central Co-Operative Bank Limited, Solan

Appeal stand dismissed

ITA 123/CHANDI/2024[2014-15]Status: DisposedITAT Chandigarh14 Jul 2026AY 2014-15

Bench: Hon’Ble Shri Laliet Kumar, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकर अपील सं./ Ita No.118/Chandi/2024 (िनधा"रण वष" / Assessment Year: 2012-13) & 2. आयकर अपील सं./ Ita No.119/Chandi/2024 (िनधा"रण वष" / Assessment Year: 2013-14) & 3. आयकर अपील सं./ Ita No.123/Chandi/2024 (िनधा"रण वष" / Assessment Year: 2014-15) Ito Jogindra Central Co-Operative Bank Ltd. बनाम/ Ward Parwanoo Plot No. 35F Head Office Solan Sector–2, H.P.M.C Road Near Thodo Ground, Rajgarh Road Vs. Parwanoo (Hp) - 173220 Solan, Himachal Pradesh - 173212 "ायीलेखासं./जीआइआरसं./Pan/Gir No. Aaaaj-8590-P (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Sh. Vishal Mohan (Sr. Advocate) With Sh. Parveen Sharma (Advocate) – Ld. Ars ""थ"कीओरसे/Respondent By : Smt. Jaishree Sharma (Cit) - Ld. Dr सुनवाईकीतारीख/Date Of Hearing : 06-07-2026 घोषणाकीतारीख /Date Of Pronouncement 14-07-2026 : आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeals By Revenue For Assessment Years (Ays) 2012- 13, 2013-14 & 2014-15 Arises Out Of Separate Orders Of Learned First

For Appellant: Sh. Vishal Mohan (Sr. Advocate) with Sh. Parveen Sharma (Advocate) – Ld. ARsFor Respondent: Smt. Jaishree Sharma (CIT) - Ld. DR

Section 144Section 36(1)(viia)Section 43D

Income Tax Officer, Parwanoo vs. Jogindra Central Co-Operative Bank Limited, Near Thodo Ground, Solan

Appeal stand dismissed

ITA 119/CHANDI/2024[2013-14]Status: DisposedITAT Chandigarh14 Jul 2026AY 2013-14

For Appellant: Sh. Vishal Mohan (Sr. Advocate) with Sh. Parveen Sharma (Advocate) – Ld. ARsFor Respondent: Smt. Jaishree Sharma (CIT) - Ld. DR

Section 144Section 36(1)(viia)Section 43D

Income Tax Officer, Parwanoo vs. Jogindera Central Co-Operative Bank Limited, Near Thodo Ground, Solan

Appeal stand dismissed

ITA 118/CHANDI/2024[2012-13]Status: DisposedITAT Chandigarh14 Jul 2026AY 2012-13

For Appellant: Sh. Vishal Mohan (Sr. Advocate) with Sh. Parveen Sharma (Advocate) – Ld. ARsFor Respondent: Smt. Jaishree Sharma (CIT) - Ld. DR

Section 144Section 36(1)(viia)Section 43D

M/S. Sumathi Bai Industrial Finance India Ltd., Chennai vs. DCIT, CC-3(1), Chennai

Accordingly, grounds of appeal filed by the assessee are partly allowed for statistical purpose

ITA 3279/CHNY/2025[2020-21]Status: DisposedITAT Chennai26 May 2026AY 2020-21

Bench: Hon’Ble Inturi Rama Rao & Hon’Ble Manu Kumar Giriिनधा"रण वष"/Assmt. Year: 2017-18) Sumathi Bai Industrial Finance India Ltd. Dcit, Corp. Circle-3(1) - C/O. J. Prabhakar, Ca, No.245, Ttk Road, Residency Chennai-600034, Tamil Vs. Nadu Apartments,, Chennai-600018, Tamil Nadu (अपीलाथ" Appellant) (""थ" Respondent) Permanent Account Number Of Assessee: Aabcs7467F िनधा"रण वष"/Assmt. Year: 2020-21) M/S. Sumathi Bai Industrial Finance India The Assessing Officer, Corporate Circle-3(1), Ltd., J.Prabhakar, Chartered Accountant, Chennai. Vs. No.245, Ttk Road, Residency Apartments,, Chennai-600018. (अपीलाथ" Appellant) (""थ" Respondent) Permanent Account Number Of Assessee: Aabcs7467F

For Appellant: AABCS7467F

Section 147Section 148Section 151ASection 153ASection 250

Sumathi Bai Industrial Finance India Ltd., Chennai vs. DCIT, Corp. Circle-3(1), Chennai

Accordingly, grounds of appeal filed by the assessee are partly allowed for statistical purpose

ITA 3278/CHNY/2025[2017-18]Status: DisposedITAT Chennai26 May 2026AY 2017-18

For Appellant: AABCS7467F

Section 147Section 148Section 151ASection 153ASection 250

Kempaiah Kemparaju, Bangalore vs. DCIT Circle-(1)(1), Bangalore

In the result the appeal of the assessee is partly allowed for statistical purposes

ITA 161/BANG/2026[2013-14]Status: DisposedITAT Bangalore19 May 2026AY 2013-14

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

For Appellant: Shri Narayan Murthy &For Respondent: Sri N. Balusamy, D.R

Section 142(1)Section 144(1)Section 147Section 148Section 151(1)Section 250

Kempaiah Kemparaju, Bangalore vs. DCIT, Circle-6(1)(1), Bangalore

In the result the appeal of the assessee is partly allowed for statistical purposes

ITA 160/BANG/2026[2017-18]Status: DisposedITAT Bangalore19 May 2026AY 2017-18

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

For Appellant: Shri Narayan Murthy &For Respondent: Sri N. Balusamy, D.R

Section 142(1)Section 144(1)Section 147Section 148Section 151(1)Section 250

ACIT, Circle-2(1)(1), Mumbai vs. M/S Bank of India, Mumbai

ITA 1548/MUM/2023[2018-2019]Status: DisposedITAT Mumbai30 Jan 2026AY 2018-2019

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

For Appellant: Shri C. NareshFor Respondent: Shri Satya Pal Kumar, CIT (DR)

Section 10Section 14ASection 250Section 32Section 90

Bank of India, Mumbai vs. The National Faceless Assessment Centre, Mumbai

ITA 1452/MUM/2023[2018-19]Status: DisposedITAT Mumbai30 Jan 2026AY 2018-19

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

For Appellant: Shri C. NareshFor Respondent: Shri Satya Pal Kumar, CIT (DR)

Section 10Section 14ASection 250Section 32Section 90

DCIT, Mumbai vs. Kotak Mahindra Bank Limited, Mumbai

The appeal of the assessee is allowed for statistical purposes and the appeal of the Revenue is dismissed

ITA 4829/MUM/2025[2022-23]Status: DisposedITAT Mumbai26 Nov 2025AY 2022-23

Bench: Shri Vikram Singh Yadav & Shri Sandeep Singh Karhail

For Appellant: Shri Madhur Agrawal a/wFor Respondent: Shri Ritesh Misra, CIT-DR

Section 35DSection 37(1)

Kotak Mahindra Bank Limited, Mumbai vs. DCIT 2(3)(1), Mumbai

The appeal of the assessee is allowed for statistical purposes and the appeal of the Revenue is dismissed

ITA 4501/MUM/2025[2022-23]Status: DisposedITAT Mumbai26 Nov 2025AY 2022-23

Bench: Shri Vikram Singh Yadav & Shri Sandeep Singh Karhail

For Appellant: Shri Madhur Agrawal a/wFor Respondent: Shri Ritesh Misra, CIT-DR

Section 35DSection 37(1)

Income Tax Officer, Parwanoo vs. Jogindra Central Co-Operative Bank Ltd., Village-Rajgarh Road

In the result, the appeal of the Revenue is dismissed

ITA 120/CHANDI/2024[2017-18]Status: DisposedITAT Chandigarh15 Oct 2025AY 2017-18

Bench: SHRI. LALIET KUMAR (Judicial Member), SHRI. KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Vishal Mohan, Sr. Advocate with Shri Parveen Sharma, Advocate (Virtual)For Respondent: Shri Manav Bansal, CIT, DR

Section 143(3)Section 43D

Income Tax Officer, Ward-1, Udupi vs. Kambadakone Rytara Seva Sahakari Sangha Ltd, Uppunda

ITA 1929/BANG/2024[2017-18]Status: DisposedITAT Bangalore12 Jun 2025AY 2017-18

Bench: Shri Laxmi Prasad Sahu & Shri Keshav Dubey

For Appellant: Sri Mahesh R Uppin, A.RFor Respondent: Ms. Neha Sahay, D.R

Section 194A(3)(v)Section 250Section 28Section 56Section 80PSection 80P(2)(a)Section 80P(2)(d)

The Erode District Central Co-Op.Bank Ltd., Erode vs. ACIT, Circle-1, Erode

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

ITA 3025/CHNY/2024[2015-16]Status: DisposedITAT Chennai29 May 2025AY 2015-16

Bench: Shri S.S. Viswanethra Ravi & Shri S.R. Raghunathaआयकर अपील सं./I.T.A. No.3025/Chny/2024 िनधा"रण वष"/Assessment Year: 2015-16 The Erode District Central Vs. The Assistant Commissioner Of Co-Operative Bank Ltd., Income Tax, 1, Bhavani Main Road, Circle 1, Karungalpalayam S.O., Erode 638 003. Erode. [Pan:Aaaat7251P] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri S. Sridhar, Advocate (Erode) ""थ" की ओर से/Respondent By : Shri P. Krishna Kumar, Jcit सुनवाई की तारीख/ Date Of Hearing : 07.05.2025 घोषणा की तारीख /Date Of Pronouncement : 29.05.2025 आदेश /O R D E R Per S.S. Viswanethra Ravi: This Appeal Filed By The Assessee Is Directed Against The Order Dated 28.10.2024 Passed By The Ld. Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi For The Assessment Year 2015-16. 2. The Assessee Raised 5 Grounds Of Appeal Amongst Which The Only Issue Emanates For Our Consideration As To Whether The Ld. Cit(A) Is Justified In Confirming The Order Of The Assessing Officer In Making

For Appellant: Shri S. Sridhar, Advocate (Erode)For Respondent: Shri P. Krishna Kumar, JCIT

Section 143(3)Section 43D

Julius Ruben, Kochi vs. Assistant Commissioner of Income Tax, Corporate Circle 1(1), Kochi

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

ITA 219/COCH/2025[2015-16]Status: DisposedITAT Cochin16 May 2025AY 2015-16

Bench: Shri George George K, Vice- & Shri Inturi Rama Rao

For Appellant: Sri.A.Gopalakrishnan, CAFor Respondent: Smt.Leena Lal, Senior AR

Section 139(4)Section 143(3)Section 154Section 250Section 40A(3)

The Nicoloson Co-Operative Town Bank Limited, Thanjavur vs. Income Tax Officer, Thanjavur

In the result the appeal of the assessee is allowed

ITA 1783/CHNY/2024[2008-2009]Status: DisposedITAT Chennai07 Mar 2025AY 2008-2009

Bench: Shri George George K, Hon’Ble & Shri S.R. Raghunatha, Hon’Bleआयकर अपील सं./Ita No.: 1783/Chny/2024 ननिाजरण वर्ज / Assessment Year: 2008-09 The Nicoloson Co-Operative Town Income Tax Officer, Bank Ltd., V. Ward (1), No 1120, East Main Street, Thanjavur. Thanjavur, Tamil Nadu 613001. [Pan: Aacft-3931-D] (अपीलाथी/Appellant) (प्रत्यथी/Respondent) अपीलाथी की ओर से/Appellant By : Shri. V. Alagappan, Ca प्रत्यथी की ओर से/Respondent By : Ms. Gouthami Manivasagam, Jcit सुनवाई की तारीख/Date Of Hearing : 24.02.2025 घोर्णा की तारीख/Date Of Pronouncement : 07.03.2025 आदेश /O R D E R

For Appellant: Shri. V. Alagappan, CAFor Respondent: Ms. Gouthami Manivasagam, JCIT

Section 143(1)Section 143(3)Section 147Section 148Section 40Section 43D

Income Tax Officer, Ward-1, Jalna, Income Tax Office vs. The Beed District Central Co-Op. Bank Ltd., Beed

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

ITA 802/PUN/2024[2015-16]Status: DisposedITAT Pune21 Feb 2025AY 2015-16

Bench: Shri R.K. Panda & Ms. Astha Chandraआयकर अपील सं. / Ita Nos.800, 801 & 802/Pun/2024 निर्धारण वर्ष / Assessment Years : 2013-14, 2014-15 & 2015-16 Income Tax Officer, Ward - 1, Jalna अपीलार्थी / Appellant The Beed District Central Co-Op. Bank Ltd., Rajuri Ves, Beed – 431122, Vs. Maharashtra Pan : Aaaat5256C Assessee By : Department By : Date Of Hearing : Date Of Pronouncement : Shri Shubham N. Rathi Shri Amol Khairnar 02-12-2024 21-02-2025 प्रत्यर्थी / Respondent Per Astha Chandra, Jm : आदेश / Order These Three Appeals Filed By The Revenue Are Directed Against The Three Separate Orders All Dated 28.02.2024 Of The Ld. Commissioner Of Income Tax (Appeals)/Nfac, Delhi [“Cit(A)"] Pertaining To Assessment Years (“Ays”) 2013-14, 2014-15 & 2015-16 Respectively. Since The Issue(S) Involved Are Identical, These Were Heard Together & Are Being Disposed Of By This Common Order.

For Appellant: Department byFor Respondent: Date of hearing

Section 143(1)Section 143(2)Section 143(3)Section 263Section 43BSection 43D

Income Tax Officer, Ward-1, Jalna, Income Tax Office vs. The Beed District Central Co-Op. Bank Ltd., Beed

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

ITA 801/PUN/2024[2014-15]Status: DisposedITAT Pune21 Feb 2025AY 2014-15

Bench: Shri R.K. Panda & Ms. Astha Chandraआयकर अपील सं. / Ita Nos.800, 801 & 802/Pun/2024 निर्धारण वर्ष / Assessment Years : 2013-14, 2014-15 & 2015-16

For Appellant: Shri Shubham N. RathiFor Respondent: Shri Amol Khairnar

Section 143(1)Section 143(2)Section 143(3)Section 263Section 43BSection 43D

Income Tax Officer, Ward-1, Jalna, Income Tax Office vs. The Beed District Central Co-Op. Bank Ltd., Beed

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

ITA 800/PUN/2024[2013-14]Status: DisposedITAT Pune21 Feb 2025AY 2013-14

Bench: Shri R.K. Panda & Ms. Astha Chandraआयकर अपील सं. / Ita Nos.800, 801 & 802/Pun/2024 निर्धारण वर्ष / Assessment Years : 2013-14, 2014-15 & 2015-16 Income Tax Officer, Ward - 1, Jalna Vs. अपीलार्थी / Appellant The Beed District Central Co-Op. Bank Ltd., Rajuri Ves, Beed – 431122, Maharashtra Pan : Aaaat5256C प्रत्यर्थी / Respondent Assessee By : Department By : Date Of Hearing : Date Of Pronouncement : Shri Shubham N. Rathi Shri Amol Khairnar 02-12-2024 21-02-2025 Per Astha Chandra, Jm : आदेश / Order These Three Appeals Filed By The Revenue Are Directed Against The Three Separate Orders All Dated 28.02.2024 Of The Ld. Commissioner Of Income Tax (Appeals)/Nfac, Delhi [“Cit(A)"] Pertaining To Assessment Years (“Ays”) 2013-14, 2014-15 & 2015-16 Respectively. Since The Issue(S) Involved Are Identical, These Were Heard Together & Are Being Disposed Of By This Common Order.

For Appellant: Department byFor Respondent: Date of hearing

Section 143(1)Section 143(2)Section 143(3)Section 263Section 43BSection 43D