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TMI Blog2021 (3) TMI 1016X X X X Extracts X X X X X X X X Extracts X X X X ..... Homes Ltd. [ 2011 (8) TMI 178 - KARNATAKA HIGH COURT] after taking note of Section 145 of the Act has held that once a particular asset is shown as non performing asset then the assumption that it is not yielding any revenue. When an asset is not yielding any revenue, the question of showing that revenue and paying tax would not arise. The contentions, which are sought to be raised by learned counsel for the revenue do not arise for consideration in the context of substantial question of law, which has been framed by this court. The concurrent findings have been recorded by the Commissioner of Income Tax (Appeals) as well as tribunal in this regard, which cannot be termed as perverse. - Decided in favour of assessee. - I.T.A. NO.136/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtain amount under section 40(a)(ia). The assessing authority further refused to admit the debited amount in P/L A/c pertaining to provision for non-performing asset (NPA). The assessee challenged the said order passed by the assessing authority before Commissioner of Income Tax (CIT) of appeals. The CIT allowed the appeal and as such Revenue preferred appeal before the Tribunal. The Tribunal has dismissed the appeal. Hence, the present appeal has been preferred by Revenue. 3. This Court has framed the following substantial questions of law: 1. Whether on the facts and circumstances of the case, the Tribunal is right in law in deleting the interest accrued on non performing assets from the computation of taxable income for the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,38,222 under section 40(a)(ia) by considering the available materials on record as well as provisions of the Act ? 4. The learned counsel appearing for the appellants revenue has fairly submitted before this court that so far as substantial question Nos.3 4 are concerned, he is not pressing for the same. 5. Learned counsel for the respondent assessee has drawn the attention of this court towards the judgment delivered in ITA No.137/2015 dated 13.11.2020. His contention is that the questions of law No.1 and 2 have already been answered by this Court in the aforesaid case. He has drawn the attention of this Court towards paragraphs No.4 to 9 of the aforesaid judgment. Paras 4 to 9 of the said judgment are extracted hereunder: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eduction and the same is in contravention of the law laid down by the Supreme Court in CATHOLIC SYRIAN BANK LTD. VS. CIT (SC) 343 ITR 270 . It is further submitted that the principle laid down in the aforesaid decision has not been taken note of by the tribunal and therefore, the matter requires re consideration. It is also urged that reliance placed on decision of this court in COMMISSIONER OF INCOME-TAX VS. CANFIN HOMES LTD., 347 ITR 382 is of no assistance to the assessee as in the aforesaid decision, the effect of Section 36(1)(viia) of the Act has not been considered. 6. On the other hand, learned counsel for the assessee submitted that tribunal was justified in holding that accounting interest income on non performing asset on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... debt is allowed under Section 36(1)(viia) of the Act in the light of the decision of the Supreme Court in UCO Bank Ltd. supra. The tribunal in its order dated 10.10.2014 inter alia has held that though the assessee has used the nomenclature as provision for non performing assets but in pith and substance, the provision has been created for bad and doubtful debts and in doing so the assessee has followed the guidelines framed by Reserve Bank of India. The tribunal has therefore, affirmed the finding recorded by the Commissioner of Income Tax (Appeals). 8. This court in Canfin Homes Ltd. supra after taking note of Section 145 of the Act has held that once a particular asset is shown as non performing asset then the assumption that it is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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