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2018 (4) TMI 127

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....ble income at Rs. 4,06,49,359/- by making various additions. When the assessee preferred an appeal before the CIT(A) against the order of AO, the CIT(A) partly allowed the appeal of the assessee. 3. Against the order of CIT(A), the assessee is in appeal before us raising the following grounds of appeal: "1. The Commissioner erred in confirming partly the additions and disallowances to returned income which is contrary to facts of the case, contrary to the evidence on record and unsustainable in law. 2. The Commissioner erred in confirming the disallowance of Depreciation claimed on UPS, Cash Dispenser and ATM Switch in determining the total income. 3. The Commissioner erred in confirming the disallowance of Depreciation claimed on ....

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.... depreciation on printer and scanner and confirmed the action of the AO at 15% depreciation on Cash Dispenser, ATM Switch, MICR security printer and UPS. 7. Ld. AR submitted that the issue in dispute is squarely covered by the decision of the coordinate bench of ITAT, Hyderabad in assessee's own case for AY 2013-14 in ITA No. 1265/Hyd/2014, vide order dated 28/02/2018. 8. Ld. DR neither controverted the submissions of the ld. AR nor brought any contrary decision in this regard. 9. Considered the rival submissions and perused the material on record. As submitted by the ld. AR, we find that the issue in dispute squarely covered by the decision of the coordinate bench in AY 2013- 14 (supra), wherein both of us are party, and the coordinate ....

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....ribunal at Delhi has held that the ATM is a computer telecommunication device that allows Bank Customers to access banking at places other than the normal bank without having to take the trouble to go to the Bank in person and collect the cash as is done under the conventional method of withdrawing money from the Bank and that the ATM Machines are computerized machines which not only allow the customers to withdraw money but they can check the account balance, pay bills, purchase goods and services and therefore, unless it is computerized and linked with the main server, it is not possible to operate the ATM. 10. From the reading of the above judgments, we find that the assessee is eligible for depreciation @ 60% on ATM and other related....

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....h are binding on the banks. The AO observed that the provisions of section 43D of the Act cannot be applied to the assessee bank as it is not a scheduled bank but a cooperative bank. according to AO, non-scheduled cooperative banks are specifically excluded from the exemption including interest of sticky advances. He, therefore, treated the interest on sticky advances as income of the assessee. 11. Before the CIT(A), the assessee submitted elaborately, which were extracted by the CIT(A) in his order. After considering the submissions of the assessee, the CIT(A) discussed the issue at length by referring section 43D and various case law as well as RBI guidelines and held that the AO is justified in treating interest on NPAs as taxable on ac....

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....Vs. Shri Mahila Sewa Shakari Bank Ltd.,(ITA No. 531 of 2015, dated 05-08-2016), wherein the bench referred to catena of decisions and decided in favour of the assessee by observing as under: 11. From the rival submissions advanced by the learned counsel for the respective parties, it is evident that there is no dispute that the RBI Guidelines are applicable to the assessee. It is the case of ITA No.1194/Hyd/2016 The Kranti Cooperative Urban Bank Ltd., Hyderabad. The assessee that in view of the RBI Guidelines, it cannot charge interest on accrual basis and that following the theory of the real income, taxability of any notional income like accrued interest on NPAs would not arise. It has also been contended that even otherwise in view of....

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.... are catena of decisions with regard to the accrual of income only in the year of receipt. Even if it is assumed that there are two views possible, as per the decision of the Hon'ble Supreme Court in the case of CIT Vs. Vegetable Products ITA No.1194/Hyd/2016 The Kranti Co-operative Urban Bank Ltd., Hyderabad Ltd., (1973) 88 ITR 192 (SC), a view which is favourable to the assessee has to be taken and thus he strongly submitted that the addition made by the A.O, and confirmed by the CIT(A), is not in accordance with law. 8. The Ld. DR, on the other hand, submitted that the provisions of the RBI Act are subservient to the provisions of Sec 43D of the income tax Act and thus strongly relied upon the orders passed by the taxing authorities. ....