2018 (1) TMI 1232

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ndent by : Shri Nirmit Mehta, A.R. ORDER Per Mahavir Prasad, Judicial Member This appeal of the assessee relating to assessment year 2012-13 is directed against the order of Learned Commissioner of Income Tax (Appeals)-5, Vadodara dated 16.11.2015 which is arising out of order u/s.143(3) of the Income Tax Act, 1961 dated 24.03.2015 framed by Dy. Commissioner of Income Tax, Circle - 1(2), ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ited to Profit and Loss account during the year. The assessee submitted that it was maintaining accounts on mercantile system and as per AS-1 issued by ICAI, only if it is reasonable certain that collection can be made, the revenue is to be realized. The assessee submitted that since there was no certainty of recovery of principle amount of loan as well as interest on NPA, therefore, the interest ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....961, read with section 45Q, of the Reserve Bank of India Act, 1934 and section 5, read with section 56 of the Banking Regulation Act, 1949 - Income - Accrual of (Interest) - Assessment year 2010-11 - Assessee, a cooperative bank filed its return of income for relevant year but did not show interest income on non-performing assets (NPAs) as according to assessee it was not realisable -Assessing Off....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d, yes -Whether twin factors come into play while determining tax liability, namely, income recognition and computation and insofar as income recognition is concerned, it would be RBI Directions which would prevail in view of provisions of section 45Q of RBI Act and section 145 would have no role to play - Held, yes -Whether in view of mandate of RBI guidelines, assessee could not have recognised ....