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TMI Blog2013 (2) TMI 731X X X X Extracts X X X X X X X X Extracts X X X X ..... - Dated:- 15-2-2013 - Shri D.K.Tyagi, Judicial Member and Shri T.R. Meena, Accountant Member For the Appelant : Shri A. C. Shah, A.R. For the Respondent : Shri Y.P. Verma, Sr. DR ORDER PER : T.R.Meena, Accountant Member This is an appeal at the behest of the assessee which has emanated from the order of CIT(A)-IV, Baroda, dated 08.08.2012 for A.Y. 2009-10. The effective grounds of appeal are as under: 1. The learned CIT(A) has erred in confirming the addition of ₹ 1,58,897/- in interest on NPA Account in as much as such interest has not accured. 1.1 The learned CIT(A) has misread the Supreme Court decision in the case of UCO Bank 237 ITR 889 and Board Circular dated 09.10.1984. 1.2 The appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the A.O., the assessee carried the matter before CIT(A)-II, Baroda, who had confirmed the addition. The operative portion of the order is as under: 3.4 I have considered the reasons for making addition of ₹ 1,58,897/- on accofunt of interest on NPA as mentioned by the AO in the assessment order as well as the above submission of the appellant. The appellant in its above submission has stated that during the year he had provided interest on NPA accounts which was credited to Mudat Viti Vyaj Anamat and shown on liability side in the balance sheet. As per the appellant, it is not its income as it is not possible to recover the same. It is submitted by the appellant that as per the RBI guidelines there is no interest to be charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r this amount of interest and it is not shown in the balance sheet, then it can be said that such interest cannot be added to the total income of the appellant. Hence it cannot be said that such income should be offered to tax only when it is actually received. Considering all these facts, I hold that the AO has correctly made the addition of ₹ 1,58,897/- in the case of the appellant in view of the reasons as mentioned by him in the assessment order and therefore, the same is confirmed. Thus, the above grounds of appeal of the appellant are hereby dismissed. 4. Now the assessee is before us. Ld. Counsel for the appellant contended that the assessee is a Cooperative bank engaged in carrying on banking business. During A.Y. 2009-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 262 ITR 662-668, wherein Hon ble Bombay High Court has answered in favour or assessee and against the Revenue. Therefore, he requested to delete the addition. At the outset, ld. Sr. D.R. relied upon the order of the CIT(A) and A.O. 5. We have heard the rival contentions and perused the material on record. The appellant is making the provision of interest as per the guidelines issued by the R.B.I. However, same has not been credited in the p l account as it was notional had not received actually by it. Section 43 is also not applicable as assessee has not credited in the p l account but shown in the assets and liability side in the balance sheet directly and also not received actually. Thus, we have considered view that the CIT(A) was not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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