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2019 (7) TMI 743 - AT - Income TaxInterest on sticky loans - Co-operative Banks as eligible for deduction u/s. 43D in respect of interest on sticky advances/Non Performing Assets - HELD THAT:- Interest of sticky loans has been laid to rest by Hon’ble Jurisdictional High Court in the case of Commissioner of Income Tax Vs. Deogiri Nagari Sahakari Bank Ltd. [2015 (1) TMI 1218 - BOMBAY HIGH COURT] held that Co-operative Banks are eligible for deduction u/s. 43D in respect of interest on sticky advances/Non Performing Assets. The aforesaid law has been reiterated in the case of Principal Commissioner of Income Tax Vs. Solapur District Central Co-op. Bank Ltd. [2019 (2) TMI 238 - BOMBAY HIGH COURT] . Thus, in view of law laid down by the Hon’ble Jurisdictional High Court, ground Nos. 1 to 3 of the appeal by the Department are dismissed. Disallowance u/s. 14A r.w. Rule 8D - HELD THAT:- Assessee has not earned any exempt income in the period relevant to the assessment year under appeal. The Hon’ble Delhi High Court in the case of Cheminvest Limited Vs. Commissioner of Income Tax [2015 (9) TMI 238 - DELHI HIGH COURT] has held that no disallowance u/s. 14A is to be made in the absence of any exempt income. The CIT (Appeals) has decided the issue in line with the judgment of Hon’ble High Court. We find no reason to interfere with the findings of CIT (Appeals) on this issue. Accordingly, the ground No. 4 of the appeal is dismissed being devoid of any merit.
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