TMI Blog2018 (1) TMI 1232X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax vs. Shri Mahila Sewa Sahakari Bank Ltd [2016 (8) TMI 377 - GUJARAT HIGH COURT] we dismiss the appeal of the department as Co-operative bank is also a banking company; not liable to pay tax on NPA interest on accrual basis in view of RBI norms relating to income recognition and assets classification. - Decided against revenue - I.T.A. No. 483/Ahd/2016 - - - Dated:- 23-1-2018 - Shri P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the fact on record that the assessee is a non-scheduled co-operative bank and the provisions of section 43D are not applicable to the assessee. 3. The relevant facts as culled out from the materials on record are as under:- During the course of the assessment proceedings, it was observed by the AO that assessee had failed to offer interest income to tax on all the loans and advances out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preferred first statutory appeal before the ld. CIT(A) who allowed the appeal of the assessee. 5. We have gone through the relevant record and impugned order. Ld. AR cited an order of Jurisdictional High Court in the matter of Pr. Commissioner of Income Tax vs. Shri Mahila Sewa Sahakari Bank Ltd. [2016] 72 taxmann.com 117 (Gujarat). In this matter, Hon ble High Court decided the matter in favo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Banking Regulation Act, 1949 to mean any company which transacts business of banking in India - Held, yes - Whether in view of clause (a) of section 56 of 1949 Act, expression 'banking company' would take within its sweep a co-operative bank - Held, yes - Whether therefore, Assessing Officer was not justified in holding that CBDT's Circular F .No. 201/21/84-ITA-ll. dated 9-10-1984 (reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [In favour of assessee] 6. Respectfully following the above said judgment, we dismiss the appeal of the department as Co-operative bank is also a banking company; not liable to pay tax on NPA interest on accrual basis in view of RBI norms relating to income recognition and assets classification. 7. In the result, appeal filed by the department is dismissed. This Order pronounced in Op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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