IN HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD INCOME TAX APPEAL NO. 44 OF 2014 COMMISSIONER OF INCOME TAX,AURANGABAD VERSUS VAIJAPUR MERCHANTS CO OP. BANK LTD... Advocate for Appellant : Mr. Alok Sharma Advocate for Respondents : Mr. A.D.Kasliwal.. CORAM : A.V. NIRGUDE & V.K. JADHAV, JJ. Dated: January 09, 2015. ORAL ORDER : 1. learned counsel for appellant suggested that this appeal would give rise to substantial question of law as to whether Section 43 D of Income Tax Act is applicable to present case. 2] According to him, case pertains to year 2009 10, when present provisions of Section 43 D, 36 and 80 P were not in statute book as they appear now. In such situation, whether financial institution is entitled to exemption on so called income of interest accrued on non performing assets, was still question and such question was answered in various judgments which were delivered prior to 2006. One of such judgments is reported in (1999) 4 Supreme Court Cases 599 in 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. question before Court was whether interest accrued but not recovered can be said to be Uploaded on - 16/01/2015 Downloaded on - 04/07/2020 14:41:29 2 ITA 44.14.odt income and can be taxed. Supreme Court after careful consideration of question held that in certain cases such accrued income is not taxable. There is one more question. Whether respondent bank is scheduled bank as understood by Section 43C of Income Tax Act?. answer is in affirmative. Schedule bank is bank as per Section 5(C) of Banking Regulation Act is banking company. We therefore, do not find it necessary to interfere in judgment. We hold that no substantial question of law arises in this appeal. 3] learned counsel for revenue, placed reliance on judgment reported in 2010 (2) SCC 548 in 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 judgment of Supreme Court in case of Uco Bank cited supra. Appeal is dismissed. (V.K. JADHAV, J.) (A.V. NIRGUDE, J.).. aaa/ Uploaded on - 16/01/2015 Downloaded on - 04/07/2020 14:41:29 Commissioner of Income-tax, Aurangabad v. Vaijapur Merchants Co-Op. Bank Ltd