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TMI Blog2018 (3) TMI 1175X X X X Extracts X X X X X X X X Extracts X X X X ..... ] wherein it is held that no disallowance u/s 40(a)(ia) of the Act can be made wherever short deduction of TDS is made. As no disallowance can be made for short deduction of TDS, we direct the AO to verify that the assessee has deducted TDS but may be short. Short deduction does not given any right to AO to disallow the expenses for short deduction. - Decided in favour of assessee - ITA No.71 And 72/NAG/2015 - - - Dated:- 6-3-2018 - SH. G.D.AGRAWAL, HON BLE PRESIDENT AND SH. MAHAVIR SINGH, JUDICIAL MEMBER For The Appellant : Sh. K.B.Lohiya, Adv. Sh. Shailesh Agrawal, CA For The Respondent : Sh. Gitesh Kumar, Sr.DR ORDER PER BENCH These two appeals by assessee are arising out of the order of Ld.CIT(A)-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assification/details of such debts/NPAs, in terms of the age of debts, to ascertain the quantum of interest attributable to such NPAs which have become irrecoverable or no recovery for three consecutive accounting years could be made by the appellant with a view to bring the interest accrued on such NPAs within taxability, as the ambit of envisaged in the Board's Circular. 9.3.Considering the facts of the present case, it would be necessary to compute the income that is to be brought to tax being interest on certain amounts classified as NPAs in view of the Board's above referred Circular dated 09.10.1984. The AR of the appellant vide his letter has provided the bifurcation of the interest accrued on NPAs and the figures of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertified by the Bank Management. This ground is partly allowed. Aggrieved the assessee came in appeal before the Tribunal. 3. At the outset, Ld Counsel for the assessee stated that the issues are regarding accrued interest on NPA amounting to ₹ 33,47,052/-, deduction of excess NPA interest disallowed amounting to ₹ 82,53,506/-, overdue interest difference of ₹ 47,69,440/- on NPA the issue is the same. We find that the issue as regards to overdue interest on NPA account and we have already adjudicated this issue in the case of ITA No.127, 128 135/NAG/2015 in the case of THE BULDHANA DISTRICT CENTRAL COOP. BANK LTD. vs DCIT wherein we have held as under:- 4. We have heard the rival contentions and gone throug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are on account of subvention of interests for Kharif season for the year 2009-10 and probably waiver of Loan and Payment Scheme, 2008. Before us, it was explained by the assessee that out of the total credit of ₹ 17,16,80,205/-, the assessee claimed deduction of ₹ 10,15,60,904/- because the said amount has been included in the income wrongly by the assessee and this came to his knowledge when this was pointed out by the Statutory Auditor in his Audit Report and, therefore, the same was claimed in the computation of income submitted alongwith the return of income. Ld. Counsel for the assessee drew our attention to page 34 of the assessee s Paper Book wherein Auditor s Report dated 06.09.2010, the estimate is given as under:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 10,15,60,904/- and this amount was reversed and debited to the P L A/c for the relevant A.Y. 2011-12 and in the computation of income, same has been added because the claim has already been made in the return of income for A.Y. 2010-11. It was explained that this claim was made in A.Y. 2010-11 because it was subsequently pointed out by the Statutory Auditor in his Audit Report. It was explained that there is no claim of double deduction for this, he submitted the following details as under:- 1. Kharif Season 2009-10-4% Punjabrao Deshmukh Scheme Interest Subvention up to 31.03.2010 on ₹ 60.00 Crores This amount is receivable by the Taluka Societies therefore reversed. 2400 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income for A.Y. 2010-11 i.e. year under consideration. In view of these facts, we allow the claim of the assessee and this issue of assessee s appeal is allowed. 4. As we have principally decided the issue in favour of the assessee in the case of THE BULDHANA DISTRICT CENTRAL COOP. BANK LTD. vs DCIT (supra), respectfully following the same, we direct the AO to re-compute the overdue interest and accrued interest on NPAs according. 5. One more issue in ITA No.72/NAG/2015 is as regards to the order of Ld.CIT(A) in confirming the disallowance of deduction u/s 40(a)(ia) of the Act for short deduction of TDS amounting to ₹ 3,66,660/-. For this, the assessee has raised the following ground:- 4. The Learned Commissioner of Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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