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| The Tax Publishers2019 TaxPub(DT) 4879 (Pune-Trib) INCOME TAX ACT, 1961
Section 143(3)
Co-operative Banks are eligible for deduction under section 43D in respect of interest on sticky advances/Non-Performing Assets as decided in the case of CIT v. Deogiri Nagari Sahakari Bank Ltd. [(2015) 379 ITR 24 (Bom) : 2015 TaxPub(DT) 3300 (Bom-HC)], therefore, addition made by AO on account of interest on sticky loans was not warranted.
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Business deduction under section 43D - Interest on sticky loans - Eligiblity of Co-operative banks as t o deduction -
AO passed the assessment order under section 143(3) by making addition on account of interest on sticky loans. AO was of view that provisions of section 43D could not be applied to assessee, as it was not a scheduled Bank but a Cooperative Bank. In the opinion of the AO, considering the provisions of section 43D, non-scheduled Cooperative banks are specifically excluded from the special provisions of section 43D, regarding interest on sticky advances. Held: High Court in the case of CIT v. Deogiri Nagari Sahakari Bank Ltd. [(2015) 379 ITR 24 (Bom) : 2015 TaxPub(DT) 3300 (Bom-HC)] held that Co-operative Banks are eligible for deduction under section 43D in respect of interest on sticky advances/Non-Performing Assets. Thus, appeal of Revenue was dismissed.
Followed:CIT v. Deogiri Nagari Sahakari Bank Ltd., Peoples Cooperative Bank Ltd., The Nanded District Central Co-Op. Bank Ltd., Vasantadada Nagari Sahakari Bank Ltd. (2015) 379 ITR 24 (Bom) : 2015 TaxPub(DT) 3300 (Bom-HC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
INCOME TAX ACT, 1961
Section 14A
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