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2012 (9) TMI 1023 - AT - Income TaxAddition made on account of sticky advances - Decided in favour of assessee - See ACIT Versus Osmanabad Janta Sah. Bank Ltd. [2015 (3) TMI 886 - ITAT PUNE] Accrual of interest - interest on FDRs with NDCC Bank accrued with period of time - Held that:- there is no dispute to the factual position that the NDCC Bank is restrained from carrying on routine business transactions, inter alia, which pertains to accepting fresh deposits and/or repaying existing deposits, etc. As a consequence, it is quite clear that there is a genuine impairment on the part of the assessee to earn the impugned amount of interest on FDRs with NDCC Bank. In this background, the ultimate direction of the CIT(A) that the Assessing Officer may tax the interest on accrual basis, whenever NDCC Bank is allowed by the Reserve Bank of India to repay deposits or interest to the assessee, is reasonable and cannot be faulted with. We accordingly find no justifiable reasons to uphold the action of the Assessing Officer in taxing the amoun Addition made on account of payment of ex-gratia - Held that:- We find no error on the part of the CIT(A) in giving a direction to the Assessing Officer to verify the facts and then allow the deduction subject to payment having been made. We uphold the order of the CIT(A) on this issue. Addition on leave encashment - Held that:- The account statement shows that the expenditure claimed and actually paid during the year which reflects the liability arising during the year itself and it has been actually paid. In this view of above factual matrix, we find that the CIT(A) made no error in deleting the addition
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