Tribunal upholds CIT(A) decision on NPA provision & interest, dismissing revenue's appeal.

The Tribunal upheld the CIT(A) decision to delete additions for NPA provision and interest accrued but not realized, dismissing the revenue's appeal for the assessment year 2013-14. The Tribunal supported the assessee's adherence to NABARD guidelines for provision and mercantile system of accounting, finding no errors in the CIT(A) findings. The cross objection by the assessee aligned with the CIT(A) order, leading to no separate adjudication.

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Issues involved: Appeal and cross objection by revenue and assessee against CIT(A) order for A.Y. 2013-14.

Issue 1 - NPA Provision:
- Revenue's grievance: CIT(A) erred in deleting addition for fresh provision for NPA out of realization of preceding years' NPA.
- CIT(A) decision: Assessee did not make any provision for NPA in A.Y. 2013-14 as there were no doubtful assets, reversing excess provision from earlier years.
- CIT(A) upheld appellant's practice of following NABARD guidelines for provision, deleting the addition.
- Tribunal noted previous decision supporting assessee's position, dismissed appeal by revenue.

Issue 2 - Mercantile System of Accounting:
- Revenue's grievance: CIT(A) erred in deleting addition for interest accrued but not realized due to mercantile system of accounting.
- AO made addition for un-realized interest, disregarding assessee's accounting method.
- Tribunal referred to previous decision regarding interest on sticky loans, supporting assessee's position.
- Found no error in CIT(A) findings, dismissed revenue's appeal.

Separate Judgement by Judges:
- No separate judgement delivered by the judges.

Conclusion:
- Tribunal upheld CIT(A) decision to delete additions, dismissed revenue's appeal.
- Cross objection by assessee supported CIT(A) order, requiring no separate adjudication.

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