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2016 (4) TMI 1290 - AT - Income TaxProvision of overdue interest on NPA accounts - Held that:- It is an undisputed fact that assessee is a co-operative bank and is governed by the Reserve Bank of India guidelines. We find that ld. CIT(A) after considering the CBDT Circular, provisions of Act and various decisions cited in the order has held that A.O. was not justified in disallowing the claim of deduction on the issue of interest on overdue loans. We find that Hon’ble Bombay High Court in the case of CIT vs. Deogiri Nagar Sahakari Bank Ltd. & Ors. (2015 (1) TMI 1218 - BOMBAY HIGH COURT) has held that prudential norms issued by Reserve Bank of India are equally applicable to co-operative banks and that interest on sticky advances is not taxable. Before us, Revenue has not brought on record any contrary binding decision in its support. In view of the aforesaid facts, we find no reason to interfere with the order of ld. CIT(A). Thus, the ground of Revenue is dismissed.
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