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The Beed Dist. Central Co-op. Bank Ltd.

5. We have heard the arguments of both sides and perused the material available on record. It is observed that the new claim made by the assessee bank for deduction on account of penal interest charged by RBI for non-maintenance of SLR and CRR was not entertained by the Assessing Officer as the same was not made by way of revised return validly filed by the assessee bank. The Ld. CIT(A) not only entertained the said claim at the appellate stage but also allowed the same on merit. It is observed that the action of Ld. CIT(A) in entertaining the said claim at appellate stage is duly supported by the decision of the Hon'ble Supreme Court in the case of Goetze (India) Ltd. Vs. CIT (2006) 284 ITR 323 (SC) and even the decision rendered by him in allowing the claim of assessee for deduction on account of penal interest charged by RBI for non-maintenance of SLR and CRR on merit is duly supported by the decision of Hon‟ble Jurisdictional High Court in the case of CIT Vs. Deogiri Nagari Sahakari Bank and Others (supra). The Revenue in the present appeal has not challenged the impugned order of Ld. CIT(A) on these issues. The limited grievance as raised by the Revenue in the specific ground taken in its appeal and as further argued by the Ld. DR during the course of hearing before the Tribunal is that the deduction claimed by the assessee on account of penal interest paid to RBI represented provision to the extent of Rs.6,13,89,000/- and the Ld. CIT(A) was not justified in allowing the claim of the assessee for deduction to that extent. In this regard, Ld. Counsel for the assessee has submitted that the entire liability on account of penal interest charged by RBI for non-maintenance of SLR and CRR was accepted by the assessee bank and the same having been arisen and crystallized during the year under consideration, the Ld. CIT(A) was fully justified in allowing the claim of the assessee for deduction even on account of provision made on account of penal interest charged by RBI. Keeping in view this categorical assertion made by the Ld. Counsel for the assessee, which has remained undisputed or uncontroverted by the Ld. DR, we find no infirmity in the impugned order of Ld. CIT(A) allowing the claim of assessee for The Beed Dist. Central Co-op. Bank Ltd.