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2014 (11) TMI 288 - AT - Income TaxInterest accrued on Non-Performing Assets – Applicability of CBDT Circular - Held that:- Following the decision in assessee’s own case for the earlier assessment year, it has been held in Maharashtra Nagari Sahakari Bank Ltd. [2014 (11) TMI 240 - ITAT PUNE] - Vide an explanation (d) r.w.s. 36(1)(viia) annexed to section 43-D the definition of the entities incorporated by the section have been defined and in the absence of any contrary material, the assessee is covered by one of the entities, hence the provisions of section 43-D are to be applied - The CBDT u/s.119 of the I.T. Act has power to issue Circulars in exercise of its statutory powers - If the Board consider it necessary to lay down certain Rules and then direct the sub-ordinate authorities, such directions are required to be followed and such Circular would be binding on the Department unless and until held as ultra vires by a court of law - in terms of CBDT Circular the interest is to be added as income only when actually received or credited in respect of the "sticky advances" while making assessment for a financial institution. Interpretation of the language of the statute – Concept of real income approved in the case of banking business – Held that:- If the statute has used the terminology for the chargeability of interest on the basis when "credited" or "actually received", then no ambiguity has been left by the Statute - If the statute is so clear that an interpretation can easily be made, then that exact meaning should be given to the language of the Section - section 43-D has to be applied in its letter and spirit - assessee has directly taken the interest to the Balance Sheet and it is not routed through the Profit & Loss Account – thus, there is no reason to interfere in the order of the CIT(A) – Decided against revenue.
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