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TMI Blog2018 (6) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to provision created for CA audit fee - allowable expenditure - Held that:- We find that the CIT (A) has given categorical finding that this expenditure has actually been incurred by the assessee. It is further seen that even the provision was created keeping in mind the audit fee prescribed by the NABARD and after taking into account the number of branches which the assessee was operating. Therefore, on this issue also there is no need for any interference by us. - Decided against revenue - ITA No. 939/Del/2016 - - - Dated:- 30-5-2018 - SH. PRAMOD KUMAR, ACCOUNTANT MEMBER AND SH. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER Asessee by : Sh. S.K. Bansal, CA Revenue by : Sh. Ravi Kant Gupta, Sr. DR. ORDER PER SUDHANSHU SR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Now, the department has approached the ITAT challenging the deletion of these two additions / disallowances by the Ld. CIT (A). 3. The Ld. Sr. Departmental Representative vehemently supported the findings recorded by the assessing officer and submitted that the Ld. CIT (A) had erred in deleting the additions / disallowances which were now being challenged before the ITAT. 4. In response the Ld. Authorised Representative placed reliance on the order of ITAT Delhi in assessee s own case for assessment year 2008-09 in ITA no. 2486/Del/2016 with respect to the ground pertaining to accrued interest on NPA Accounts. It was submitted that ITAT, vide order dated 31st October 2013, had dismissed the department s appeal on identical issue and h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is well supported by RBI / NABARD circular dated 17.8.2002 vide para No. 3.1 clearly states that the policy of income recognition should be based on record of recovery and therefore unrealized income should not be taken into profit and loss account by State Co-op Bank / Central Co-op Banks and that the provisions of Section 43D of the Act are clear regarding the recognition of interest income on NPA. The Ld. CIT(A) in our view has thus rightly held that overdue interest not realized during the year and credited to suspense interest account cannot be taken tobe the income of the assessee. Thus the Ld. CIT (A) has thus rightly deleted the addition in question. The same is upheld. There is no substance in the contention of the Ld. DR tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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