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2014 (6) TMI 925 - AT - Income TaxNon deduction of tax at source on the payment of interest on the deposits to members and non-members - Held that:- Disallowance made on account of interest paid by the assessee society to its members on deposits in excess of ₹ 10,000 invoking the provisions of section 40(a)(ia) is to be deleted as relying on The Bagalkot District Central Co-op. Bank, Bagalkot case [2015 (1) TMI 1005 - ITAT BANGALORE ] Addition on account of interest accrued on the loans & advances, which were classified as nonperforming assets - CIT(A) deleted the addition - Held that:- A similar issue involving identical facts thus has already been decided by the Tribunal in the case of ITO v. M/s. Shiva Sahakari Bank Niyamitha (2012 (12) TMI 1021 - ITAT BANGALORE) following the decision of the Hon’ble jurisdictional High Court in the case of Canfin Homes Ltd. (2011 (8) TMI 178 - KARNATAKA HIGH COURT) and respectfully following the same, we uphold the impugned order of the ld. CIT(Appeals) deleting the addition made by the AO on account of interest accrued on loans & advances classified as nonperforming assets. Disallowance of provision for bad and doubtful debts in respect of rural advances - Held that:- At this issue is squarely covered in favour of the revenue and against the assessee by the decision of the Tribunal rendered in the case of Syndicate Bank v. DCIT [2015 (4) TMI 727 - ITAT BANGALORE ]confirming the disallowance made by the AO on account of assessee’s claim for deduction u/s. 36(1)(viia) on account of provision for bad and doubtful debts in respect of rural advances. - Decided against assessee Disallowance on account of amortization of premium on Govt. securities - Held that:- Squarely covered in principle in favour of the assessee by the decision of the Tribunal rendered in the case of ING Vysya Bank Ltd [2015 (2) TMI 892 - ITAT BANGALORE ] . The matter is restored to the file of the Assessing Officer for the limited purpose of verifying as to whether the relevant securities in the present case are “held to maturity” by the assessee and accordingly to allow relief to the assessee on such verification, keeping in view the decision of the Tribunal in the case of ING Vysya Bank Ltd. (supra). Disallowance on account of payment by the assessee towards unapproved gratuity fund - Held that:- Respectfully following the decision of the co-ordinate Bench of the Tribunal in the case of Bilagi Pattana Sahakari Bank Niyamit (2013 (5) TMI 860 - ITAT BANGALORE), we delete the disallowance made by the AO and confirmed by the ld. CIT(Appeals) on account of payment made by the assessee to unapproved gratuity fund
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