9911796707
TMI Blog2018 (4) TMI 1360X X X X Extracts X X X X X X X X Extracts X X X X ..... nefit which would amount to a benefit similar to that under section 43D of the Act, therefore, does not merit acceptance. - ITA. No: 1846/AHD/2015 - - - Dated:- 9-4-2018 - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI S.S. GODARA, JUDICIAL MEMBER For The Appellant : Shri M.G. Patel, AR For The Respondent : Shri Mudit Nagpal, Sr. D.R. ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. This appeal by the Assessee is preferred against the order of the Ld. CIT(A, Gandhinagar, Ahmedabad dated 23.04.2015 pertaining to A.Y. 2012-13. 2. The only grievance of the assessee is that the ld. CIT(A) erred in confirming addition of ₹ 19,27,060/- on account of interest on nonperforming assets u/s. 43D of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the application of a particular provision of the statute in certain situations by applying a beneficial interpretation to the provision in question so as to benefit the assessee and make the application of the fiscal provision, in that case, in consonance with the concept of income and in particular, notional income as also the treatment of such notional income under the accounting practice. The court, accordingly, did not find any inconsistency or contradiction between the circular so issued and section 145 of the Income-tax Act. In the aforesaid premise, until the circular is revoked, the same continues to be in force and the same having been issued to mitigate the hardships caused to the class of assessees covered by the circular, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctly claim the benefit which would amount to a benefit similar to that under section 43D of the Act, therefore, does not merit acceptance. 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 cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ently therefore, the expression banking company would take within 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 probabili ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
