Commissioner of Income-tax, Aurangabad v. The Osmanabad Janta Sahakari Bank Ltd
[Citation -2014-LL-1202-39]
Citation | 2014-LL-1202-39 |
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Appellant Name | Commissioner of Income-tax, Aurangabad |
Respondent Name | The Osmanabad Janta Sahakari Bank Ltd. |
Court | HIGH COURT OF BOMBAY AT AURANGABAD |
Relevant Act | Income-tax |
Date of Order | 02/12/2014 |
Assessment Year | 2006-07 |
Judgment | View Judgment |
Keyword Tags | substantial question of law • financial institution • interest accrued • accrued income |
Bot Summary: | Whether a financial institution is entitled to exemption on so called income of interest accrued on non performing assets, was still a question and such question was answered in various judgments which were delivered prior to 2006. One of such judgments is reported in 4 Supreme Court Cases 599 in the case of Uco Bank, Calcutta Versus Commissioner of Income Tax, W.B. This judgment is quite significant statement of law as it takes into account methods of accounts adopted by banks and financial institutions. Whether the respondent bank is a scheduled bank as understood by Section 43 C of Income Tax Act. Schedule bank is a bank as per Section 5(C) of Banking Regulation Act is a banking company. Do not find it necessary to interfere in the judgment. Uploaded on - 19/12/2014 Downloaded on - 03/07/2020 18:14:15 3 ita65-13.odt 3 The learned counsel for the revenue, placed reliance on judgment reported in 2010 SCC 548 in the case of Southern Technologies Ltd. Versus Joint Commissioner of Income Tax, Coimbatore. We are not relying on this judgment, mainly because this judgment pertains to non banking financial companies, where similar question in respect of such non banking financial companies was involved but this law would not affect our judgment and also the judgment of Supreme Court in the case of Uco Bank cited supra. |