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TMI Blog2013 (6) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... are applicable on the assessee being a primary agriculture credit society or a rural development bank - allowed for statistical purpose - ITA No.529 and 530/Ahd/2013 - - - Dated:- 21-6-2013 - SHRI MUKUL Kr. SHRAWAT, JUDICIAL MEMBER AND ANIL CHATURVEDI, ACCOUNTANT MEMBER. Assessee by : Shri S.N. Divetia Revenue by : Shri T. Sankar, Sr.DR ORDER PER MUKUL Kr. SHRAWAT, JUDICIAL MEMBER: These two appeals have been filed by the assessee emanating from two separate orders of the CIT(A)-XVI, Ahmedabad dated 24.1.2012 pertains to the assessment years 2007-2008 and 2009-2010. For both the years, grounds are narrative, however revolves around a single issue in respect of interest on non-performing assets ( NPA for short) w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was ₹ 11.57 lakhs. The assessee, therefore, was asked to furnish the details of advances classified as NPA . The assessee was also asked to furnish the details of recovery of principal amount. The assessee has also referred to section 43D of the Act for the legal proposition that in case of a public financial institution or a scheduled bank, the income by way of interest in relation to such categories of bad debts or doubtful debts, the interest shall be chargeable to tax in the previous year in which it is credited by the scheduled bank in its profit loss account. According to the assessee, the bank is scheduled bank as per the meaning assigned in section 36 of the I.T.Act. However, the AO had taken a view that the assessee was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) for enhancement of the income, the learned CIT(A) finally directed to compute the accrued interest on NPA at ₹ 1,16,77,000/-. Now the assessee is again in appeal before us. 5. With these brief backgrounds, we have heard both the sides. Although the assessee is before us for the second time, but still we feel that some of the areas of the dispute have remained unanswered. First question which is yet to be addressed is whether the assessee is a scheduled bank or not. In this regard, the assessee is expected to place on record the requisite evidence, through which it can be ascertained that the assessee falls under any of the category as prescribed in Explanation to section 43D of the Act. Because of this reason, we hereby direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... collection of interest and it is for the AO to examine facts of each individual case . Unquote. Further, the Hon ble Court vide para 18 has held as under: 18. Mere characterisation of an account as a NPA would not by itself be sufficient to say that there is uncertainty as regards realizability of income or interest income thereon. Accrual of interest is a matter of fact to be decided separately for each case on the basis of examination of the facts and circumstances. Respectfully following this decision of the Hon ble Madras High Court, we are also of considered opinion that the accrual of interest is a matter of fact, to be decided on the basis of examination of the status of each party. We, therefore, restore this issue back t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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