TaxTMI 
TaxTMI 
2018 (3) TMI 1175
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....egards to the addition made by the AO and confirmed by the Ld.CIT(A) being accrued interest of Non Performing Asset (in short "NPA") accounts. 3. During the course of assessment proceedings, the AO noticed that the assessee is following Mercantile System of Accounting except that interest on NPA which was accounted for on cash basis. According to the AO, the provisions of section 145(1) of the Income Tax Act, 1961 (in short "Act") are applicable and the assessee following Mercantile System of Accounting so as to include the interest accrued on NPA as income. Aggrieved, the assessee preferred appeal before ld.CIT(A), who also confirmed the action of the AO by observing in para 9, 9.1, 9.2 and 9.3 as under:- 9.1. "I have carefully....
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..... Sub-Standard (>3M<12M) 29920141.17 2546954.96 2. Doubtful-A (>12M<24M) 27784194.73 10995346.34 3. Doubtful-B(>24M<36M) 14968522.62 7735312.65 4. Doubtful -B (>36M<48M) 44086039.14 35921325.21 5. Doubtful-C(>48M) 38668119.92 43008511.78 Total 155427017.58 100207450.94 Accordingly, as per the details submitted by the appellant, it is seen that out of the total accrued interest on NPAs of Rs. 10,02,07,451/- an amount of Rs. 2,12,77 ,614/ - only is liable to be taxed as interest charged but not received on such NPAs which falls within the period of less than 3 years. Accordingly, the AO is directed to tax Rs. 2,12,77,614/-as interest accrued on NPAs as agains....
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....rest Subvention up to 31.03.2010 on Rs. 60.00 Crores 24000000/- 4. Central Government Agricultural loan waiver & Loan Repayment Relief Scheme 2008, amount receivable from Central Government Rs. 5849.08 lacs and interest receivable for the period 01.11.2008 to 31.03.2010 for 17 months @12% 98070904/- 5. Receivable from Government of Maharasht.7espect of kharif season 2009-10 Interest Subvention @1% on the loan 10000000/- Total 171680205/- 5. These claims are on account of subvention of interests for Kharif season for the year 2009-10 and probably waiver of Loan and Payment Scheme, 2008. Before us, it was explained by the assessee that out of the total credit of Rs. 17,16,80,205/-, the assessee cl....
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....ssessee may receive the same from State Government and Central Government as per the Scheme of 2008 but actually as against demand of Rs. 9,80,70,904/-, the assessee received only a sum of Rs. 2,05,10,000/- from the Central Government and balance demand of Rs. 7,75,60,904/- was rejected. Similarly, a demand of 4% in respect of Punjabrao Deshmukh Interest Waiver Subvention Scheme was also rejected for an amount of Rs. 2.40 Crores. Therefore, the total comes to Rs. 10,15,60,904/- and this amount was reversed and debited to the P&L A/c for the relevant A.Y. 2011-12 and in the computation of income, same has been added because the claim has already been made in the return of income for A.Y. 2010-11. It was explained that this claim was made in ....
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....lready claimed the same in the computation of income for A.Y. 2010-11 i.e. year under consideration. In view of these facts, we allow the claim of the assessee and this issue of assessee's appeal is allowed." 4. As we have principally decided the issue in favour of the assessee in the case of THE BULDHANA DISTRICT CENTRAL COOP. BANK LTD. vs DCIT (supra), respectfully following the same, we direct the AO to re-compute the overdue interest and accrued interest on NPAs according. 5. One more issue in ITA No.72/NAG/2015 is as regards to the order of Ld.CIT(A) in confirming the disallowance of deduction u/s 40(a)(ia) of the Act for short deduction of TDS amounting to Rs. 3,66,660/-. For this, the assessee has raised the following ground:- ....