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2023 (3) TMI 812 - AT - Income TaxRevision u/s 263 - PCIT was of the view that AO has not made any enquiry with regard to the (1) interest on non-performing assets (2) deferred payment receipt on guarantee commission - HELD THAT:- On the issue of interest on non-performing assets the coordinate bench [2022 (4) TMI 1509 - ITAT MUMBAI] has categorically held that that the issue is squarely covered in case of the assessee by the decision of the honourable Supreme Court in case of CIT Vs. Vasisth Chay Vyapar Ltd, [2018 (3) TMI 56 - SUPREME COURT] wherein it has been held that non-performing assets on which no interest was received and possibility of recovery of capital was almost nil, possibility of recovery of interest is also nil, it could not be treated that such income has accrued to the assessee. Therefore, no income in the form of interest on non-performing assets could have been added in the hands of the assessee. Interest on perpetual bonds the coordinate Bench has also held that the issue is adequately enquired by the AO and further that interest paid on bonds are wholly and exclusively for the purposes of the business and allowable as deduction under section 36 (1) (iii) of the Act. It was further held that the assessee is a nationalized bank and there is no question of assessee investing in perpetual bonds other than for banking businesses. Accordingly, respectfully following the decision of the coordinate bench, we do not find any reason to sustain the order passed by the principal Commissioner of income tax, Mumbai for A.Y. 2016-17, under section 263 of the Act. Accordingly, we quash the revisionary order. Appeal of assessee allowed.
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