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TMI Blog2017 (3) TMI 1252X X X X Extracts X X X X X X X X Extracts X X X X ..... both grounds. The appeal as pertaining to the assessment year 2009-10 was found to have facts and issues identical to the said earlier assessment year and decided in terms thereof. The assessee was successful before the Tribunal. The Tribunal held that the change of status made by the Assessing Officer of the assessee from that of a co-operative society to a company was not permissible under the law until and unless a cogent reasoned order is passed for the same. The Tribunal also found that the issue arising out of the claim of the assessee for unrealized interest taken to income reversed, by debiting to P & L account and crediting to Overdue Interest account following the guidelines issued by the RBI, is highly debatable and it cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er made a mistake in including the said provisions under deductions which was rectified by the rectification order. The same was an error apparent and duly rectified. Mr. Khaitan, learned senior Advocate appeared on behalf of the assessee and submitted that overdue interest provision and provision from standard assets aggregating the sum of Rs. 67,33,445/- had been allowed as deduction under Section 36(1)(viia) by the AO in the assessment order. However, by subsequent rectification order dated 14th February, 2012 the Assessing Officer had deleted the deduction. Referring to the impugned order he submitted that the deduction could not be reversed since interest debited to borrowed account but for any reason was not actually realized, the ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee applied for rectification under section 154. The rectification regarding the amount of Rs. 2,91,93,886/- taken twice was made as sought for in the said application. However a further rectification, not applied for, was made by deleting the sum of Rs. 67,33,445/- from the said sum of Rs. 2,91,93,886/- allowed as a deduction under section 36(1)(viia). On appeal the CIT(A) observed that the said two provisions are not allowable as per the Act. On further appeal, the Tribunal held as follows:- "..........In case of assessee, if interest is debited to borrowed account but for any reason interest has not actually realized, account is to be treated as NPA as per the guidelines issued by RBI. In that eventuality, the amount is unrealized ..... X X X X Extracts X X X X X X X X Extracts X X X X
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