Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (5) TMI 1168 - ITAT PUNEDisallowance of deduction u/s 36(1)(viia) - assessee is a co-operative society registered under Maharashtra Cooperative Societies Act and is engaged in the business of banking - provision for bad and doubtful debts made by any scheduled bank/co-operative bank - Held that:- The provisions of clause (vii) deal with ‘bad debts’, whereas, provisions of clause (viia) deals with ‘provision for bad and doubtful debts’. The distinction which the assessee has tried to create by dividing the provisions of clause (viia) into two parts is merely self-drawn. Both the parts of clause (viia) are joined with conjunction “and”. Therefore, both the limbs of clause (viia) have to be read together and not as alternate. The Hon’ble Supreme Court of India in the case of Catholic Syrian Bank Ltd. vs. CIT ( [2012 (2) TMI 262 - SUPREME COURT OF INDIA] has categorically held that the provisions of section 36(1)(vii) deals with general deduction available to a bank and even non-banking business. The provisions of section 36(1)(vii) operate in their own field and are not restricted by the limitation of section 36(1)(viia) of the Act. Accrual of income - Interest on NPA - assessee bank has been consistently following the practice of crediting interest accrued on NPA accounts to Overdue Interest Reserve as per the guidelines issued by Reserve Bank of India - interest actually recovered on such accounts is credited to Profit & Loss Account and due tax is paid thereon - Held that:- The issue raised in the present appeal is identical to one already decided by the Co-ordinate Bench in the case of ACIT vs. Ratanchand Shah Sahakari Bank Ltd. (2014 (12) TMI 345 - ITAT PUNE) what to talk of interest, even the principle amount itself had become doubtful to recover - In this scenario it was legitimate move to infer that interest income thereupon has not “accrued”- thus, there was no infirmity with the decision of the CIT(A) in holding that the interest income relatable on NPA advances did not accrue to the assessee – Decided against revenue. Disallowance of amortization of premium paid on Govt. - Securities held under HTM category - Held that:- We observe that this issue has already been decided in assessee’s own case in assessment year 2009-10. There has been no change in facts and circumstances of the case in impugned assessment year. DR has not been able to refute the findings of the Tribunal in immediately preceding assessment year. Thus, the addition towards disallowance of amortization of premium on Govt. Securities held under HTM category is deleted.
|