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2018 (6) TMI 824 - AT - Income TaxEligibility to deduction u/s 80P(2)(a)(i) - assessee bank getting the deposit from non members - Held that:- As in earlier A.Y.2009-10 [2012 (7) TMI 1067 - ITAT DELHI], the Tribunal decide this issue in favour of the assessee Assessing Officer in the present assessment year also not pointed out how income would generate to the assessee by taking deposits from non-members. The direct source of income is ultimately from the credit facility provided to its members or from sale of seeds agricultural implements etc. contemplated in section 80P(2)(a)(iv). The calculation made by the AO is on hypothesis only - The net income generated to the assessee is only from its members. On the deposits, it will pay interest which would be its expenses and would be set off against the total income generated from the credit facility. It has not income on the deposits from the non-members rather it must have paid interest on such deposits. Accrued Interest on NPA - shown in balance sheet as accumulated balance of previous years and also such income was not earned by the bank since the borrower account was defined as “NPA” account and interest on such account cannot be accounted for as income - Held that:- As decided in ACIT vs. The Rohtak Central Cooperative bank [2015 (4) TMI 366 - ITAT DELHI] overdue interest not realized during the year and credited to suspense interest account cannot be taken to be the income of the assessee. CIT(A) has thus rightly deleted the addition in question. The same is upheld. There is no substance in the contention of the Ld. DR that the assessee was having no objection to this addition, since we find that it was an alternative submission of the assessee before the AO. - Decided against revenue
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