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2014 (12) TMI 1367 - AT - Income TaxAddition to Interest Income - Additions made on account of accrued interest on loans and advances without appreciating that after the amendment to section 145 of the Act w.e.f. 1.4.1997, banks are required to follow the mercantile system of accounting.-CIT-A deleted that addition - DR submitted that the assessee has to follow the provisions of section 145 of the Act for the purposes of computation of income under the normal provisions of the Act - HELD THAT:- Respectfully following the decision of the Hon'ble High Court of Karnataka in the case of CIT V Urban Co-operative Bank [2014 (10) TMI 740 - KARNATAKA HIGH COURT] and the decision of the co-ordinate bench of this Tribunal in the assessee's own case for Assessment Year 2007-08 2014 (11) TMI 94 - ITAT BANGALORE], we decide the issue in favour of the assessee. Consequently, the grounds raised at S.Nos.3 & 4 and amended ground No.3 raised by revenue are dismissed. Provision for Non-Performing Assets (‘NPA’) - HELD THAT:- Tribunal in the assessee's own case for Assessment Year 2007-08 [2014 (11) TMI 94 - ITAT BANGALORE], we uphold the order of the learned CIT (Appeals) in allowing the assessee's claim of deduction on account of provision for NPA.
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