TaxTMI 
TaxTMI 
2023 (2) TMI 810
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....pellant under Section 260A of the Income Tax Act, 1961 (briefly 'the Act' hereinafter) against the order dated 18.03.2005 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad (briefly 'the Tribunal' hereinafter) in I.T.A.No.894/Hyd/2002 for the assessment year 1999-2000. 3. Appeal was admitted vide the order dated 17.09.2012 on the following substantial questions of law: a. Whether on the facts and in the circumstances of the case, the Tribunal is justified in holding that interest pertaining to non-performing assets cannot be deducted from the taxable income relating to an accounting year, even though the relevant assets have become non-performing assets only in that accounting year ? b. Whether ....
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....claim of the assessee and added the same to the income of the assessee vide the assessment order dated 19.03.2006. 6. This was assailed by the assessee before the Commissioner of Income Tax (Appeals)-IV, Hyderabad (for short 'CIT(A)' hereinafter). By the appellate order dated 20.08.2002, CIT(A) held that assessing officer was correct in disallowing the deduction claimed by the appellant. Adverting to Section 43D of the Act, CIT(A) held that income by way of interest in relation to such categories of bad or doubtful debts as may be prescribed by the RBI in relation to such debts shall be chargeable to tax in the previous year in which it is credited by the Schedule Bank to its profit and loss account. Holding that claim of the assessee is....
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.... Court held that the claim of deduction in the year of realization of mistake is in order. It may be noted here that it was a case of excess collection of interest and there was a duty cast upon the bank to refund the excess interest whereas in the instant case interest on NPAs was earlier declared as income on accrual basis and though it has not become bad in all respects, the entry was sought to be reversed only because of RBI guidelines. The assessee has furnished the circular letter of the RBI containing consolidated instructions/guidelines on matters relating to prudential norms on income recognition In the circular dated 4th July, 2002, the RBI has consolidated all the instructions issued earlier. Paras 3.2, 3.2.1 and 3.2.2 of the Cir....
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....Rs.6 lakhs. As on 31-3-98 it can be predicted that it would become NPA and thus the assessee accounts for interest of Rs.3 lakhs for three months ending on 31-3-98. Such interest is assessable to tax in the assessment year 1998-99. However, if the assessee has not received any interest during the previous year relevant to the assessment year 1999-00, on the expiry of 30th day of June, 1998 the assessee bank can treat it as NPA and interest for the period of three months if already credited in the books as income, such entry should be reversed in the later part of the accounting year and for the balance period of 9 months of the previous year 1998-99 the assessee need not recognize the income of Rs.9 lakhs. If the assessee has other....
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....BI norms. Our view is supported by the decision of Apex Court in the case of State Bank of Travancore (158 ITR 102) as well as the decision of ITAT, Delhi Bench in the case of Poysha Oxygen (P) Ltd., (91 ITD 616). Admittedly, the assessee ha not written off the impugned sum as bad-debt u/s 36(1)(vii) of the Act and in fact the case of the assessee is that there is no question of write off us 36(1)(vii) of the Act. Such being the case, we are of the view that the claim of the assessee is contrary to law and accordingly we reject the contention of the assessee. 8. From the above, we find that Tribunal had considered the circular of RBI dated 04.07.2002 and held that once an income of a previous year is recorded, assessee cannot re....