TMI Blog2017 (9) TMI 461X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld. CIT(A) has given finding on fact that assessee has not written off such NPA and interest thereon as bad debt during the year under consideration this finding on fact is not controverted by the Ld. Counsel for the assessee. Ld. Counsel submitted that this is allowable u/s 37 of the Act. In our view, the contentions of the assessee is misplaced the Section 37 relates to the any expenditure not being expenditure of the nature described in Section 30 to 36 since the interest is part of that would be covered u/s 36(1)(vii) of the Act. Further, the plea of the assessee is that this has been allowed in the earlier years in our view rule of consistency would apply where the assessee has been following the particular accounting policy and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirming the disallowance of the provision of overdue interest merely alleging that the same is not allowable under the Act. The disallowance so made and confirmed by the Ld. CIT(A), being totally contrary to the provisions of law and facts kindly be allowed as claimed. 3. The Ld. AO further erred in law as well as on the facts of the case in charging interest u/s 234B of the Act. The appellant totally denies its liability of charging of any such interest. The interest so charged, being contrary to the provisions of law and facts, kindly be deleted in full. 4. The appellant prays your honour indulgences to add, amended or alter of or any of the grounds of the appeal on or before the date of hearing. 3. Briefly, stated t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,07,950/- . Ld. D/R submitted that no query was raised during the assessment proceedings. 5.3 We have heard the rival contentions, perused the material available on record. The Ld. Counsel for the assessee could not point out that the Assessing Officer during the course of hearing had made any query with regard to overdue interest and audit fees. The Ld. CIT(A) dismissed the ground by observing as under:- 3.2 I have considered the facts of the case, the assessment order and the submission of the appellant. The assessment had been reopened after observing that there was a claim of provision of ₹ 41,25,000/- under the head overdue interest and audit fees of ₹ 1,07,950/- which were debited to the P L account and were a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... selected for scrutiny in almost every year except in Assessment Year 2010-11. The same books of account and the other ancillary record showing details maintained in similar manner in the past also, were duly produced before the earlier assessing officers yet however, in none of these years, the AO has never made disallowance on account of overdue interest. Similar is the position in later years. Ld. Counsel for the assessee submitted that the Assessing Officer has not demonstrated as to why he is not following the rule of consistency. 6.2 Per contra Ld. Departmental Representatives opposed the submissions and supported the order of the authorities below. 6.3 We have heard the rival contentions, perused the material available on rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rounds against the order of the Ldj. CIT(A), Alwar is appeal No. 140/215-16 dated 25-01-2017 in the case of M/s Sikar Sahakari Bhoomi Vikas Bank Ltd. for the A.Y. 2011-12:- 1. That the Commissioner of Income Tax (Appeals)-5, Jaipur has erred in allowing deduction under section 80P(2)(a)(i) of the Income Tax Act 1961 to the assessee on the overdue interest of ₹ 41,25,000/. 2. On the facts and in the circumstance of the case and in law, the CIT(A) has erred in allowing deduction under section 80P(20(a)(i) of the IT Act 1961 to the assessee, ignoring that it is a Cooperative bank not entitled for deduction as per the provision of sub-section(4) of section 80P. 3. The appellant craves leave or add, alter, amend, withdr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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