2018 (3) TMI 1748

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.... circumstances of the case Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 2,14,165/- made by the AO holding that the interest due on 'Non-Performing Assets' was taxable as the Co-op Bank was following mercantile system of Accounting except withregard to the interest pertaining to NPAs. 2. That the Ld. CIT(A) has erred in law and on facts of the case in holding that the ratio of the decision of Hon'ble Delhi High Court in case of M/s Vasisth Chay Vyapar Ltd. (ITA No.552, 565 of 2005 of 2005 ITA No.1191 of 2007, ITA No.139, 466, 357 of 2008 & ITA No. 408 of 2003 date of decision 29.11.2010 is applicable in the case. 3. It is prayed that the order of the Ld. Commissioner of Income Tax (Appeals) be se....

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....ng on Banking Business. The Ld. AR also placed on record computation of total income, where it is clearly reflects that the provision of N.P. amounts and NP Accounts are also part of the computation of total income and from the audited financial statement, it reflects that the assessee is following the mercantile system of accounting in accordance with RBI guidelines. Even otherwise the Co-ordination Bench of ITAT at Amritsar has already gone through with minute details of the assessee's own case itself and vide ITA No. 652(Asr)/2015 and ITA No.604 & 605(Asr)/2016 passed on 20.01.2017 whereby similar and identical grounds raised by the Revenue dismissed. For the sake of convenience and clarity, we feel it appropriate to reproduce the crux p....

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.... Act, it is on record that during the proceedings before the Id. CIT(A), the assessee, by way of submission dated 17.09.2015, the assessee had stated that the assessee had been confirmed by the Headquarter of the Punjab State Co-operative Bank, to be a scheduled bank. This position has not been disputed. 9. In view of the above, we find that the grievance of the department is without any force. The order of the ld. CIT(A) is a well versed reasoned detailed order, requiring no interference whatsoever at our hands. The same is, accordingly, confirmed. 10. As noted at the beginning of this order, all the three appeals involve the same common issue. That being so, our above observations shall apply equally, mutatis mutandis, t....