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2015 (4) TMI 366 - AT - Income TaxAccrued interest not credited to P&L account - CIT(A) deleted the addition - Held that:- Issue in question is covered in favour of the assessee by the order of the Tribunal in the case of ACIT Vs. The Jhajjar Central Coop. Bank Ltd [2013 (10) TMI 1291 - ITAT DELHI] wherein held that the submission of the assessee which is well supported by RBI/NABARD circular dated 17.8.2002 vide para No. 3.1 clearly states that the policy of income recognition should be based on record of recovery and therefore unrealized income should not be taken into profit and loss account by State Co-op Bank / Central Co-op Banks and that the provisions of Section 43D of the Act are clear regarding the recognition of interest income on NPA. The Ld. CIT(A) in our view has thus rightly held that overdue interest not realized during the year and credited to suspense interest account cannot be taken to be the income of the assessee. - Decided in favour of assessee. Disallowance of expenses - CIT(A) deleted the addition - Held that:- The expenditure which are disallowed as prior period were expenses relatable to month of March, 2006 for which the payments were made in the month of April, 2006. These expenses become due only after the management examines the expenses and authorizes the payment of the same. Therefore, these expenditures become due in the current assessment year and same is to be allowed as deduction. Hence, the order of CIT(A) is correct and no interference is called for.- Decided in favour of assessee. Addition on account of suspense individual and societies - CIT(A) deleted the addition - Held that:- If the amount deposited in the said account belong to the various depositors, who intended to open the bank account with the assessee, then the said amount cannot attain the character of ‘income’ in the hands of the assessee unless it is shown that the said amount has become the income of the assessee. If the said amount does not belong to the assessee and the assessee has utilized the same until the said amount is refunded back, no notional interest can be added to that amount as either the assessee has to pay interest if the said amount is credited to the saving account or the amount itself has to be refunded back in case the account is not opened. There is no question of assessing any notional interest on the said amount. Therefore, we find no fault or infirmity in the findings recorded by the ld. CIT (Appeals) vide which the impugned addition and interest thereon is deleted, we decline to interfere.- Decided in favour of assessee. Disallowance u/s 40(a)(ia) - non deduction of TDS on interest payment - CIT(A) deleted part addiion - Held that:- The interest payment of ₹ 2,12,600/- is to an education institution, whose income is exempt u/s 10(23C) of the Act. Therefore, as per Circular No.4/2002 no TDS is required to be made on such interest payment. Hence, we uphold the order of the CIT(A) - Decided in favour of assessee. Addition on account of printing and stationary supplied to branches by the head office - CIT(A) deleted the addition - Held that:- Revenue has not been able to controvert the finding of the CIT(A) by placing on record any material/documents as the net amount charged to P&L a/c under this head is only ₹ 2,37,966/- and closing stock of ₹ 4,47,310/- has already been shown. The AO worked out the said disallowances without appreciating the facts properly.- Decided in favour of assessee.
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