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2015 (2) TMI 196 - AT - Income TaxDisallowance u/s 40(a)(ia) - Non deduction of TDS - payment towards interest exceeding ₹ 10,000/- on time deposits - Held that:- This issue is covered by the decision of the co-ordinate Bench of the Tribunal in the case of The Bagalkot District Central Co-op. Bank vs. JCIT [2015 (1) TMI 1005 - ITAT BANGALORE] wherein it has been held that the assessee which is a co-operative society carrying on banking business, when it pays interest income to a member both on time deposits and on deposits other than time deposits, with such co-operative society, need not deduct tax at source u/s 194A by virtue of exemption granted vide clause (v) of sub-section(3) of the said section. - Decided in favour of assessee. Disallowance of gratuity paid to retired employees - Held that:- Gratuity actually paid by the assessee cannot be disallowed u/s 36(1)(v) or u/s 40(a)(ia) of the Act. However, the assessee’s contention that gratuity has been paid to the retired employees has not been verified by any of the authorities below. In view of the same, we deem it fit and proper to remit this issue to the file of the AO for limited purpose of verification as to whether gratuity has actually been paid to the employees. - Decided in favour of assessee for statistical purposes. Interest accrued on NPA but not credited to the profit and loss account - CIT(A) deleted the addition - Held that:- In case of CIT vs. Canfin Homes Ltd. [2011 (8) TMI 178 - KARNATAKA HIGH COURT ] has laid down the law on accrual of income, particularly interest on sticky loans/NPA and has held that if in the account of the assessee, it is clearly stated that though a particular income is due to him but it is not possible to recover the same, then it cannot be said to have been accrued and the said amount cannot be brought to tax. Thus no reason to interfere with the order of the CIT(A). - Decided against revenue.
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