TMI Blog2018 (3) TMI 1748X X X X Extracts X X X X X X X X Extracts X X X X ..... rds issued by the Institute of Chartered Accountants of India. Section 45Q of the RBI Act provides, in the non obstante Clause with which it begins, that the provisions of the Chapter under which section 45Q falls, shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being inforce. In “M/s Vasisth Chay Vyapar Ltd.” (2010 (11) TMI 88 - Delhi High Court ), it has been held that when an NBFC classifies an asset as a Non-performing Asset in accordance with the directions issued the Reserve Bank of India, it is legitimate to infer that the interest income thereon is not accrued, even though the NBFC is following the mercantile system of accounting. Interalia, “M/s Southern Technologies Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in case of M/s Vasisth Chay Vyapar Ltd. (ITA No.552, 565 of 2005 of 2005 ITA No.1191 of 2007, ITA No.139, 466, 357 of 2008 ITA No. 408 of 2003 date of decision 29.11.2010 is applicable in the case. 3. It is prayed that the order of the Ld. Commissioner of Income Tax (Appeals) be set aside and that of the Assessing Officer be restored. 2. The Ld. CIT(A) while relying upon the order passed by the Hon ble ITAT, Amritsar Bench dated 20.01.2017 in ITA No.604, 605 625(Asr/2015-16 in the case of the assessee itself deleted the addition of ₹ 2,14,85,165/- made by the A.O on account of interest on non performing assets (NPA). 3. The Ld. DR on behalf of the Revenue Department relied upon the order passed by the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh with minute details of the assessee s own case itself and vide ITA No. 652(Asr)/2015 and ITA No.604 605(Asr)/2016 passed on 20.01.2017 whereby similar and identical grounds raised by the Revenue dismissed. For the sake of convenience and clarity, we feel it appropriate to reproduce the crux part of the aforesaid judgments. 6. It remains an undisputed fact the assessee co-operative bank has been following the mercantile system of accounting, except with regard to interest pertaining to NPAs. As notice by the ld. CIT(A), this proposition stands accepted by the department in the earlier years. The assessee has been following the RBI guidelines in this matter. Its method of accounting is entirely in accordance with the RBI guidelines. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... requiring no interference whatsoever at our hands. The same is, accordingly, confirmed. 10. As noted at the beginning of this order, all the three appeals involve the same common issue. That being so, our above observations shall apply equally, mutatis mutandis, to the other two appeals also. 11. Accordingly, all the orders of the ld. CIT(A) in these three appeals are upheld and the grounds raised by the department are rejected. 12. In the result, all three appeals are dismissed. We are of the considered opinion that the facts and issues raised in the instant appeal are directly same as of the aforesaid judgment and mutatis mutandis applies to the instant case as well, hence, we do not find any substance in the appeal of the R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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