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TMI Blog2017 (6) TMI 352X X X X Extracts X X X X X X X X Extracts X X X X ..... ccrual basis looking to the guidelines of the Reserve Bank of India - Decided in favour of assessee. - TAX APPEAL NO. 324 of 2017, TAX APPEAL NO. 325 of 2017, And TAX APPEAL NO. 326 of 2017 - - - Dated:- 5-6-2017 - MR. AKIL KURESHI, AND MR. BIREN VAISHNAV, JJ. For The Appellant : Mr Manish Bhatt for Mrs Mauna M Bhatt, Advocate ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. These appeals arise in common background. Facts may be noticed from Tax Appeal No. 324 of 2017. 2. The appeals are filed by the revenue challenging the judgement of Income Tax Appellate Tribunal dated 27.7.2016. The following questions are presented for our consideration. (A)Whether Appellate Tribunal is right in law and on facts i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ewa Sahakari Bank Ltd. reported in (2016) 242 Taxman 60 wherein this Court in conclusion held as under: 30. As can be seen from the assessment order, before the Assessing Officer the assessee had inter alia submitted that interest on NPA was not charged as mandatorily stipulated under Income Recognition and Asset Classification norms of the Reserve Bank of India. It has also been submitted that the CBDT circular bearing F.No.201/21/84-ITA-II dated 9.10.1984 issued under section 119 of the Act for all banking and non banking financial companies stating that if the interest has not been received for three years, the same will not be taxed as an income even on accrual basis even if interest has been credited to Interest Suspense Account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n its sweep a co-operative bank. The Assessing Officer has thereafter entered into a discussion on the provisions of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, which provides for enforcement of security interest of banks and financial institutions and has observed that in the instant case, no material has been brought on record by the assessee to prove its efforts made in a bid to recover such debts which are classified as NPA and other categories. The Assessing Officer has also entered into a discussion as regards the quality of management, etc., without even examining as to whether or not there was any probability of interest being received on the NPAs. The Commissioner (Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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