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TMI Blog2016 (7) TMI 1605X X X X Extracts X X X X X X X X Extracts X X X X ..... d in allowing the claim of interest on NPAs. The Ld. CIT(A) failed to appreciate that the accrued interest on NPA should be worked as per the provisions of section 43D r.w.r. 6EA. The Hon'ble ITAT, Pune in its order dated 23.01.2014 of Cosmos Bank in ITA Nos.460/461 of 2012 has upheld the stand of the department that the accrued interest should be worked out as per section 43D r.w.r. 6EA and accordingly brought to tax on accrual basis. 2. The order of the ld. CIT(A) be vacated on this issue and that of AO be restored. 3. The learned Authorized Representative for the assessee at the outset pointed out that the issue raised in the present appeal is squarely covered in favour of the assessee by various orders of Tribunal. 4. The issue rais ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ratio laid down by the Pune Bench of Tribunal in ACIT Vs. Osmanabad Janta Sahakari Bank Ltd. in ITA No.795/PN/2011, order dated 31.08.2012, held as under:- "2. The assessee is a Co-operative Bank engaged in the business of accepting deposits from members and giving loans to members. It has filed its return of income on 11.09.2009 for the year under consideration declaring total income at Rs. 14,57,840/-. In the scrutiny assessment, the Assessing Officer noticed that the assessee had not credited interest receivable or accrued on non-performing assets (hereinafter referred to as NPA) to its profit and loss account for financial year 2008-09. The Assessing Officer after rejecting the various contentions of the assessee has held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) and accordingly the same is confirmed. In the result, the Revenue's ground is dismissed." The above decision has been followed in (i) ACIT, Circle -3, Nanded V/s Bhagyalaxmi Mahila Sahakar Bank Ltd. ITA No.793/PN/2011, (ii) ACIT, Circle -3 V/s Sidheshwar Sahakari Bank Ltd. ITA No.794/PN/2011 , (iii) ACIT (Central) V/s Latur Urban Co-operative Bank Ltd. ITA No.792/PN/2011 and (iv) Asst. CIT, Circle-1 V/s Deogiri Nagari Sahakari Bank Ltd. ITA No.817 & 1114/PN/2011. " 8. The Hon'ble Bombay High Court in CIT Vs. M/s. Deogiri Nagari Sahakari Bank Ltd. in Income Tax Appeal No.53 of 2014 & Ors. has laid down the proposition that the interest accrued on NPAs is not taxable in the hands of assessee, in view of the guidelines issued b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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