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2016 (7) TMI 1605 - AT - Income TaxAddition on account of accrued interest on Non-Performing Assets (NPAs) - HELD THAT:- We find that similar issue as before us arose in ITO Vs. Shankarrao Mohite Patil Sahakari Bank Ltd. [2016 (3) TMI 910 - ITAT PUNE] and in ITO Vs. Samarth Sahakari Bank Ltd [2016 (3) TMI 910 - ITAT PUNE] relating to assessment year 2011- 12, order dated 10.02.2016 and Kolhapur Mahila Sahakari Bank Ltd. Vs. ITO [2014 (1) TMI 1728 - ITAT PUNE], relating t o assessment year 2009-10, vide order dated 29.01.2014. The Tribunal in turn following the ratio laid down by the Pune Bench of Tribunal in ACIT Vs. Osmanabad Janta Sahakari Bank Ltd. [2015 (3) TMI 886 - ITAT PUNE] The Hon’ble Bombay High Court in CIT Vs. M/s. Deogiri Nagari Sahakari Bank Ltd. [2015 (1) TMI 1218 - BOMBAY HIGH COURT] has laid down the proposition that the interest accrued on NPAs is not taxable in the hands of assessee, in view of the guidelines issued by the RBI. Following the same parity of reasoning, we hold that no addition is warranted on account of interest accrued on NPAs. Accordingly, we uphold the order of CIT(A) in deleting the addition made on account of interest accrued on NPAs. The grounds of appeal raised by the Revenue are thus, dismissed.
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