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TMI Blog2018 (1) TMI 1625X X X X Extracts X X X X X X X X Extracts X X X X ..... ent years but the facts and issues involved in all the appeals are identical except for the assessment year and the amounts involved and the Ld.CIT(A) has also passed a consolidated order for two assessment years and therefore the submissions made by them while arguing one appeal would be equally applicable to the other appeals also and thus, all the three appeals can be heard together. In view of the aforesaid submissions of both the parties, we, for the sake of convenience, proceed to dispose of the three appeals by a consolidated order but however, proceed with narrating the facts in ITA No.717/PUN/2016 for assessment year 2007-08. 3. The relevant facts as culled out from the material on record are as under :- Assessee is engaged in ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The order of the Ld.CIT(A) be vacated on this issue and that of AO be restored." Similar grounds have been raised by the Revenue in A.Ys. 2009-10 and 2012-13. 4. During the course of assessment AO noticed that assessee had shown accrued interest on NPAs in the Balance Sheet. The assessee was asked to furnish the details of the accrued interest for the year and also show as to whether the same was included in the Profit and Loss account. Assessee inter-alia submitted that the interest on NPA accounts cannot be said to have been accrued to the assessee and its stand is supported by the Circular of CBDT dt.09.10.1984 and that assessee bank has been consistently following the system of accounting in respect of interest on NPAs as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... permit strict enforcement of this right. While holding that such interest even though accrued as per mercantile system of accounting but did not give real income to the assessee. The Hon'ble ITAT Pune has decided the issue on accrued interest on NPA advances not to be considered as income in favour of the bank in many cases a few of which are mentioned below: ACIT Vs Osmanabad Janta Sahkari Bank Ltd ITA No.795/PN/2011 dated 31.08.2012. ACIT Vs Siddheshwar Sahkari Bank Ltd ITA No. 794/PN/2011 dated 31.08.2012. ACIT Vs Devnagari Sahkari Bank Ltd ITA No.817 & 1114/PN/2011 dated 28.09.2012. ACIT Vs Maharashtra Nagri Sahkari Nanded Bank ITA No. 1713/PN/2011 dated 28.02.2013. 5.3 Though there are diverse views on the issue of inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions rendered by Hon'ble Bombay High Court in the case of Deogiri Nagari Sahakari Bank (supra) and the decision of the Co-ordinate Bench of the Tribunal in assessee's own case in A.Y. 2011-12 and he thus supported the order of Ld.CIT(A). 6. We have heard the rival submissions and perused the material on record. The issue in the present case is with respect to considering interest on NPA accounts as income of the assessee. We find that identical issue of taxing of interest accrued on NPA accounts arose in assessee's own case in A.Y. 2011-12. The Co-ordinate Bench of the Tribunal while deciding the issue in ITA No.418/PN/2016 for A.Y. 2011-12 order dt.04.07.2016 has decided the issue in favour of the assessee by observing as under : "7. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was following mercantile system of accounting and not cash system. Ultimately the Assessing Officer taxed on accrued interest of Rs. 25,20,022/- advance claimed to be NPA account. The matter was carried before the first appellate authority wherein, following the Osmanabad Janta Sahakari Bank Ltd. in ITA No.795/PN/2011, the CIT(A) has decided the issue in favour of the assessee and the same has been opposed before us on behalf of revenue. 2.1 After going through the rival submissions and material on record, we find that in Osmanabad Janta Sahakari Bank Ltd. (supra) the Tribunal has decided the issue in favour of assessee by observing as under: "7. In the case before us, admittedly, assessee has directly taken the interest to the Balance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal has not been set aside, stayed or over-ruled by Higher Judicial Authorities. Before us, Revenue has also not placed any material on record to point out any distinguishing feature in the facts of the present case and that of earlier year nor has placed any contrary binding decision in its support. We therefore following the decision of Co-ordinate Bench of the Tribunal and the decision of Hon'ble Bombay High Court, find no reason to interfere with the order of Ld.CIT(A) and thus the grounds of the Revenue are dismissed. 8. In the result, the appeal of the Revenue in ITA No.717/PUN/2016 for A.Y. 2007-08 is dismissed. 9. As far as the grounds raised in appeals in ITA Nos.718/PUN/2016 and 719/PUN/2016 for A.Ys. 2009-10 and 2012- 13 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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