9911796707
TMI Blog2015 (4) TMI 1161X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income-tax Act, 1961 (hereinafter referred to as "the Act") vide his order dated 28.12.2011 and assessment for AY 2009-10 was framed by JCIT, Range-2, Jalpaiguri, u/s. 143(3) of the Act for Assessment Year 2004- 05 vide his order dated 27.12.2011. 2. First we take up ITA No. 895/K/2012. The first issue in this appeal of assessee is against the order of CIT(A) in upholding the action of AO in changing the status of assessee from Cooperative Society to Company. 3. We have heard rival submissions and gone through facts and circumstances of the case. Now, before us, Ld. Counsel for the assessee could not demonstrate how the assessee's status is that of Cooperative Society instead of Company. Ld. Counsel for the assessee stated that in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause notice for enhancement of the assessment and as such the impugned order is void and illegal. 3. THAT the Ld. CIT (Appeals)-Jalpaiguri, has erred in law and on facts of the case by upholding that Provision for Overdue Interest of Rs. 61,78,989/- and Provision for Standard Assets of Rs. 5,54,456/- cannot be allowed as the appellant is following mercantile system of accounting without consulting the provisions of the statue i.e. The Banking Regulation Act, 1949 and the rules and regulations and guidelines issued by the Reserve Bank of India, which is the Controlling Authority of the appellant and the appellant is statutorily required to follow such rules, regulations and guidelines. 4. THAT the Ld. CIT (Appeals)-Jalpaiguri, has erre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business of banking and regulated by the Banking Regulation Act, 1949. The assessee is maintaining its Balance Sheet and P & L Account as required by Banking Regulations Act. The assessee statutorily required to prepare its Balance Sheet and P&L Account and as per said guidelines NPAs where interest has not been realized in cash as a prudential norm, it is not debiting the said account by interest accrued in subsequent quarters and taking this interest amount as income of the bank as the said interest has not been realized. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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