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2016 (3) TMI 915 - ITAT PUNEAddition on account of accrued interest on NPA u/s.43D - Held that:- The assessee being a co-operative bank was also governed by the Reserve Bank of India and thus the directions with regard to the prudential norms issued by the Reserve Bank of India are equally applicable to co-operative banks. The provisions of section 45Q of the Reserve Bank of India Act, 1934, have an overriding effect vis-à-vis income recognition under the Companies Act. Hence, section 45Q of the 1934 Act shall have the overriding effect over the income recognition principle followed by co-operative banks. Hence, the Assessing Officer has to follow the Reserve Bank of India Directions, 1998. Thus, the deletion of the additions on account of interest on sticky advances was justified. - Decided in favour of assessee Addition on account of amortization of premium on investment - Held that:- Pune Bench of the Tribunal in the case of Bhavani Urban Co-op Bank Ltd.(2013 (7) TMI 987 - ITAT PUNE ) allowed similar claim of the assessee. Therefore, respectfully following the decision of the jurisdictional High Court in the case of HDFC Bank Ltd. [2014 (8) TMI 119 - BOMBAY HIGH COURT ] and in absence of any distinguishable features brought to our notice by the Ld. Departmental Representative, we set-aside the order of the CIT(A) on this issue and direct the AO to delete the disallowance. - Decided in favour of assessee
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