Income Tax Appellate Tribunal - Rajkot
Jivan Commercial Co. Op. Bank Ltd.,, ... vs Addl. Commr. Income Tax, Range-2,, ... on 22 March, 2017
ITA no.578/RJT/2014
A.Y.2011-12
आयकर अपील य अ धकरण: राजकोट यायपीठ: राजकोट
IN THE INCOME TAX APPELLATE TRIBULAL: RAJKOT BENCH: RAJKOT
BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER AND
SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER
आयकर अपील सं./ ITA No.578/RJT/2014
नधारण वष/Assessment Year: 2011-12
Jivan Commercial Co-operative The Addl. CIT,
Bank Ltd., Vittalay, Dhebar Road, Vs Range-2,
Rajkot Rajkot
PAN : AAAAJ0410C
अपीलाथ / (Appellant) यथ / (Respondent)
Assessee by : Written Submission
Revenue by : Shri Avinash Kumar, D.R
सुनवाई क तार ख/ Date of Hearing : 21/03/2017
घोषणा क तार ख /Date of P ronouncement: 22/03/2017
आदेश /O R D E R
PER SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER:
This appeal has been filed by the assessee against the order of Ld.CIT(A)-III, Rajkot dated 20.3.2014 for assessment year 2011-12 passed u/s 263 of the Income Tax Act, 1961 (in short "the Act").
2. Brief facts of the case are that assessee in the relevant assessment year carried on banking business. It had filed its return of income declaring total income of Rs.3,51,69,010/- The Assessing Officer noticed that assessee had not disclosed interest income of non performing assets on accrual basis to the tune of Rs.1,42,85,155. After considering the assessee's submissions, he made addition of Rs,1,42,85,155/-. Ld.CIT(A) dismissed the assessee's appeal.
3. Having heard both the parties we find that this issue is no more res- integra. In the written submissions the assessee has relied on the ITA no.578/RJT/2014 A.Y.2011-12 decision of Hon'ble Gujarat High Court in the case of Principal CIT Vs Mahila Seva Sarkari Bank Limited wherein after referring to a plethora of decisions on this issue, the Hon'ble Gujarat High Court held that assessee was correct in not charging interest on NPA. The Hon'ble Gujarat High Court agreed with the view taken by the Hon'ble Delhi High Court in the CIT Vs. Vasisth Chay Vyapar Ltd., 330 ITR 440 wherein it was held that interest income could not be said to have accrued to the assessee having regard to provisions of section 45Q of the RBI and prudential Norms issued by the RBI in exercise of its statutory powers.
4. Respectfully, following the decision of Hon'ble Gujarat High Court, assessee's claim of not including the interest on NPA in the profit and loss account is allowed.
5. In the result, appeal of the assessee's is allowed.
Order pronounced in the Court on 22nd March, 2017.
Sd/- Sd.-
(K. NARASIMHA CHARY) (S.V. MEHROTRA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
True Copy
Ahmedabad, Dated 22 /03/2017
*Manish
आदेश क त ल प अ े षत / Copy of Order Forwarded to:-
1. अपीलाथ / Appellant-
2. यथ / Respondent-
3. संबं धत आयकर आयु त / Concerned CIT/DIT
4. आयकर आयु त- अपील / CIT (A)-IV, Rajkot
5. वभागीय त न ध, आयकर अपील य अ धकरण, राजोकट / DR, ITAT, Rajkot
6. गाड फाइल / Guard file.
आदेशानुसार / BY ORDER,
उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण/ ITAT, Rajkot