Date Of Order: 23.03.2018 Ita v. The Biapurdistrict Central Co-Op. Bank Ltd

IN THB HIGH COURT OF KARNATAKA KALABURAGI BENCH DATEKED THIS THE [RD|]DAY OF MARCH 2JO1 PRESENT THR HON’BLE Dr. JUSTICK VINBBT KOTHARI ANI THR HON’BLE MR. JUSTICK R. DEVDAS ITA NO.200014/2015C/WITA NOS.200016/2015,200015/2015 AND 200013/2015 In ITA No.200014/2015 Between: 1.The Commissioner of Income Tax (Appeals),Dr.B.R. Ambedkar Road, Belagavi.Dr.B.R. Ambedkar Road, Belagavi. a2Assistant Commissioner of Income Tax,Circle-1, Vijayapura.Circle-1, Vijayapura. .. Appellan (By Sri Ameet Kumar Deshpande, Advocate) And: The Bijapur District Central,Co-Op. Bank Ltd., Viyayapura-586101,PAN : AAAABOQOQ69 ... Responde (By Sri A Shankar and Sri M. Lava, Advocates) Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. p This Appeal is filed under Section 260A of theIncome Tax Act, praying to formulate the substantialquestion of law stated above. Allow the appeal and setaside the orders passed by the Income Tax AppellateTribunal,ee aBench,Bangalore,in.ITANo.1773/BANG/2013,dated31.12.2014|{fOr!% Assessment Year 2010-11 and confirm the order passedby the Joint Commissioner of Income Tax, BijapurRange Byapur,| In ITA No.200016/2015 Between: 1.The Commissioner of Income Tax (Appeals),Dr.B.R. Ambedkar Road, Belagavi.Dr.B.R. Ambedkar Road, Belagavi. a2Assistant Commissioner of Income Tax, Circle-1, Vijayapura. .. Appellan (By Sri Ameet Kumar Deshpande, Advocate) And: The Bijapur District Central,Co-Op. Bank Ltd., Viyayapura-586101,PAN : AAAABOOQ4E-... Responde (By Sri A Shankar and Sri M. Lava, Advocates) This Appeal is filed under Section 260A of theIncome Tax Act, praying to formulate the substantialquestion of law stated above. Allow the appeal and setaside the orders passed by the Income Tax AppellateTribunal,ee aBench,Bangalore,in.ITANo.1712/BANG/2013,dated31.12.2014|{fOr!% Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. 3 Assessment Year 2010-11 and confirm the order passedby the Joint Commissioner of Income Tax, BijapurRange Byapur,| In ITA No.200015/2015 Between: 1)The Commissioner of Income Tax (Appeals),Dr.B.R. Ambedkar Road, Belagavi.Dr.B.R. Ambedkar Road, Belagavi. ?)Assistant Commissioner of Income Tax, Circle-1, Vijayapura. ... Appella (By Sri Ameet Kumar Deshpande, Advocate) And: The Bijapur District Central,Co-Op. Bank Ltd., Viyayapura-586101,PAN : AAAABOQOQ69 ... Responde (By Sri A Shankar and Sri M. Lava, Advocates) This Appeal is filed under Section 260A of theIncome Tax Act, praying to formulate the substantialquestion of law stated above. Allow the appeal and setaside the orders passed by the Income Tax AppellateTribunal, ee aBench,Bangalore,1nITANo.1772/BANG/2013,dated|31.12.2014|for.!% Assessment Year 2009-10 and confirm the order passedby the Joint Commissioner of Income Tax, BijapurRange Byapur,| In ITA No.200013/2015 @ Between: 1.The Commissioner of Income Tax (Appeals), Dr.B.R. Ambedkar Road, Belagavi. ?)Assistant Commissioner of Income Tax,Circle-1, Vijayapura.Circle-1, Vijayapura. ... Appella (By Sri Ameet Kumar Deshpande, Advocate) And: The Bijapur District Central,Co-Op. Bank Ltd., Viyayapura-586101,PAN : AAAABOOQ4E- ... Responde (By Sri A Shankar and Sri M. Lava, Advocates) This Appeal is filed under Section 260A of theIncome Tax Act, praying to formulate the substantialquestion of law stated above. Allow the appeal and setaside the orders passed by the Income Tax AppellateTribunal,ee aBench,Bangalore,in.ITANo.1711/BANG/2013,dated31.12.2014|{fOr!% Assessment Year 2009-10 and confirm the order passedby the Joint Commissioner of Income Tax, BijapurRange Byapur,| @ Between: 1.The Commissioner of Income Tax (Appeals), Dr.B.R. Ambedkar Road, Belagavi. ?)Assistant Commissioner of Income Tax,Circle-1, Vijayapura.Circle-1, Vijayapura. ... Appella (By Sri Ameet Kumar Deshpande, Advocate) And: The Bijapur District Central,Co-Op. Bank Ltd., Viyayapura-586101,PAN : AAAABOOQ4E- ... Responde (By Sri A Shankar and Sri M. Lava, Advocates) This Appeal is filed under Section 260A of theIncome Tax Act, praying to formulate the substantialquestion of law stated above. Allow the appeal and setaside the orders passed by the Income Tax AppellateTribunal,ee aBench,Bangalore,in.ITANo.1711/BANG/2013,dated31.12.2014|{fOr!% Assessment Year 2009-10 and confirm the order passedby the Joint Commissioner of Income Tax, BijapurRange Byapur,| These appeals coming on for Admission this day,VINEET KOTHARI J.,delivered the following: Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. = JU DBiGMENT Mr. Ameet Kumar Deshpande, Advocate for Appellants-Revenue Mr. A Shankar and Sri M. Lava, Advocates _ fRespondent-Assessee 1.These four appeals filed by the Revenue arebeing disposed of by common order. The appealspertain to Assessment Years.2009-10and|2010-11against the respondent-Assessee the Bijapur DistrictCentral Co-operative Bank Limited, Vijayapur. 2.Two issues which are sought to be raised bythis Court, under Section 260A of the Income Tax Act inthe form of substantial questions of law arising out ofthe order of the learned Income Tax Appellate Tribunalare as under. 3.That the respondent-Co-operative Society engaged in the activities of Co-operative Bank for theseAssessment Years in question failed to deduct tax at Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. > source under the provisions of Section 194A (1) of theIncome Tax Act, 1961 from the interest paid to itsmember over Rs.10,000/- during the said years andtherefore a disallowance of such interest paid to themembers without TDS, was hable to be made as per theprovisions of Section 40 (a) (ia) of the Act. 4Both the learned counsel at Bar fairlysubmitted that the said issue is no longer|res-integrainview of the CBTD Circular No.19/20195 holding thasuch Co-operative Banks are not required to deduct taxat source an interest paid on one time deposits by itsmembers, paid or credited on or before01.06.2015 5.On|the.basisoT|thesaid CircularNo.19/2015, this Court has already disposed of someappeals filed by the Income Tax Department and onesuch.order1nITA|No. 100060/2016,CITUS, G Karnataka VikasGrameena.Bankdecided&# 07.06.2017, 1S cited at Bar by the learned counsels, 6.This Court in the aforesaid case of.CIT vs. Karnataka Vikas Grameena Bankheld as under: “71The learned counsel for the department -Revenue Mr. Y.V.Raviraj, submits that thecontroversy 1s no longer res integra and iscovered by the decision of the Co-ordinateBench t.e. The Commissioner of Income Taxand another Vs.The Itkal Co-OperativeBank Ltd.,The Co-ordinate Bench in the saidcase has held as below: “In this appeal by the Revenue, theissue involved is for considerationwhether the Co-operative Bank wasrequired to deduct tax while payinginterest to its members on time depositsunder Section 194-A of the Income TaxAct. Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. S 2.The Ministry of Finance, Government ofIndia|videCircular§No.19/2015inF.No.142/14/2015-TPL, has held that the Co-operative Banks are not required to deduct taxat source on time deposits of its memberspaid orcredited on or before 1.6.2015The relevant portion of the circular reads asunder: “In this appeal by the Revenue, theissue involved is for considerationwhether the Co-operative Bank wasrequired to deduct tax while payinginterest to its members on time depositsunder Section 194-A of the Income TaxAct. Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. S 2.The Ministry of Finance, Government ofIndia|videCircular§No.19/2015inF.No.142/14/2015-TPL, has held that the Co-operative Banks are not required to deduct taxat source on time deposits of its memberspaid orcredited on or before 1.6.2015The relevant portion of the circular reads asunder: “42.5 In view of this, the provisions ofthe section 194A(3)(v) of the Income-taxAct have been amended so as toexpressly provide that the exemptionprovided from deduction of tax frompayment of interest to members by a co-operativesocietyundersection194A(3)(v) of the Income-tax ActShallnot apply to the payment of intereston time deposits by the co-operativebanks to its members. As _ thamendment is effective from theprospective date of 1[st]| June, 2015the co-operative bank shall be requiredto deduct tax from the payment ofinterest on time deposits of its members, Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. ? on or after the 1[st]June, 2015. Hence, acooperative bank was not required todeduct tax from the payment of intereston time deposits of its members paid orcredited before 1[St]~ June, 2015.” In view of the aforesaid Circular, thisappealdoesnot.SUrVIVEforconsiderationand1S|accordinglydismissed. No costs, 3In view of the same, the presentappeal filed by Revenue is also disposed of,in the same terms.” T In view of the aforesaid reasons of this Courtand Ministry’s Instructions, we do not find anysubstantial question of law to be arising for ourconsideration of the present appeals filed by theRevenue on the said issue. Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. 10 8.On another issue raised by the Revenue inthe present appeals about the taxability of the intereston the bad debts/doubtful debts or NPA _ (NoPerforming Assets) by the respondent-Co-operativeBank, without such interest being actually credited inthe Profit and Loss Account of the respondent-Assessee,in the books of accounts tor the relevant AssessmentYear or such interest actually having been received bythe respondent-Assessee, the said question also standcovered by the Division Bench of this Court in the caseoT CIT vs. Canfin Homes Limited (2012) 347 ITR 382 (Karnataka). In the aforesaid case, a Co-ordinateBench of this Court held as under : “Therefore, it is clear, if an assessee adoptsthe mercantile system of accounting and inhis accounts he shows a particular income asaccruing, whether that amount is_ reallaccrued or not is liable to bring the saidincome to tax. His accounts should reflecttrue and correct statement of affairs. Merely Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. 11 (Karnataka). In the aforesaid case, a Co-ordinateBench of this Court held as under : “Therefore, it is clear, if an assessee adoptsthe mercantile system of accounting and inhis accounts he shows a particular income asaccruing, whether that amount is_ reallaccrued or not is liable to bring the saidincome to tax. His accounts should reflecttrue and correct statement of affairs. Merely Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. 11 becquse the sqid amount accrued was notrealized immediately cannot be a ground toavoid payment of tax. But, if in his account itis clearly stated though a particular income 1sdue to him but it is not possible to recover thesame, then it cannot said to have beenaccrued and the saqid aqmount cannot brought to tax. |In the Instant case, we areconcerned with a non-performing assetAs the definition of non-performing assetShows ansasset becomes non-performingwhen it ceases to yteld income. Noneperforming asset is an asset in respect ofwhich interest has remained unpaid and hasbecome past due. Once a particular asset 1sshown to be a non-performing asset, then theassumption is it is not yielding any revenue.When it ts not yielding any revenue, thequestion of showing that revenue andpaying tax would not arise_ As 1s clearfrom the policy guidelines issued by theNational Housing Bank,the income fromnon-performingassetShouldberecognized only when it tis actuall Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. 12 received_ That is what the Tribunal held inthe instant case. Therefore, the contention ofthe Revenue that in respect of non-performingassets even though it does not yield anyincome as the assessee has adopted amercantile system of accounting, he has topay tax on the revenue which has accruednotionally is without any basis. In that viewof the matter, the second substantial questionframed is answered against, the Revenueand infavour of the assessee. For the aforesaid reasons we do not seeany merit in the appeal. Accordingly, theappeals is dismissed. ~ 9gsection 43D of the Income Tax Act, whichwas originally inserted on the statute book by theFinance Act, 1991, with effect from 01.04.1991, readsas under: “43D. Special provision itn case of income ofpublicfinancialinstitutions, etce Notwithstanding anything to the contrary contained Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. 13 in any other provision of this Act, in the case of apublic financial institution or a scheduled bank or astate financial corporation or a State industrialinvestment corporation, the income by way ofinterest in relation to such categories of bad ordoubtful debts as may be prescribed having regardto the guidelines issued by the Reserve Bank ofIndia in relation to such debts, shall be chargeableto tax in the previous year in which it is credited bythe public financial institution or the scheduledbank or the State financial corporation or the Stateindustrial investment corporation to its profit andloss account for that year or, as the case may be, inwhich it is actually received by that institution orbank or corporation, whichever is earlter. Explanation.—For the purposes of this section,— (a)“public financial institution” shall havethe meaning assigned to it in section 4A ofthe Companies Act, 1956 (1 of 1956);the meaning assigned to it in section 4A ofthe Companies Act, 1956 (1 of 1956); 2 4“scheduled bank” shall have the meaningassigned to it in clause (i) of theExplanation to clause (vila) of sub-section(1) of section 36;assigned to it in clause (i) of theExplanation to clause (vila) of sub-section(1) of section 36; Explanation.—For the purposes of this section,— (a)“public financial institution” shall havethe meaning assigned to it in section 4A ofthe Companies Act, 1956 (1 of 1956);the meaning assigned to it in section 4A ofthe Companies Act, 1956 (1 of 1956); 2 4“scheduled bank” shall have the meaningassigned to it in clause (i) of theExplanation to clause (vila) of sub-section(1) of section 36;assigned to it in clause (i) of theExplanation to clause (vila) of sub-section(1) of section 36; Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. 14 (c}“sotate financial corporation” means financial corporation established undersection 3 or section 3A or an institutionnotified under section 46 of the StateFinancial Corporations Act, 1951 (63 of1951);financial corporation established undersection 3 or section 3A or an institutionnotified under section 46 of the StateFinancial Corporations Act, 1951 (63 of1951); (d)“State industrial investment corporation’means a Government company within themeaning of section 617 of the CompaniesAct, 1956 (1 of 1956), engaged in thebusiness of providing long-term financefor industrial projects and approved bythe Central Government under clause (vitt)of sub-section (1) of section 36.means a Government company within themeaning of section 617 of the CompaniesAct, 1956 (1 of 1956), engaged in thebusiness of providing long-term financefor industrial projects and approved bythe Central Government under clause (vitt)of sub-section (1) of section 36. The said provision as substituted by Finance Act,1999, with effect from 01.04.2000, reads as under:- é43D. Special provision in case of income ofpublicfinancialinstitutions, publiccompanies, etc.—Notwithstanding anything to thecontrary contained in any other provision of thisAct, — (a)in the case of a _ public financiinstitution or a scheduled bank or [a co- Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. 15 operativebank|otherthanFTprimaryagricultural credit society or] a State financialcorporation or a State industrial investmentcorporation, the income by way of interest inrelation to such categories of bad or doubtfuldebts as may be prescribed having regard tothe guidelines issued by the Reserve Bank ofIndia in relation to such debts; 2 4in the case of a public company, theincome by way of interest in relation to suchcategories of bad or doubtful debts as may beprescribed having regard to the guidelinesissued by the National Housing Bank inrelation to such debts, Shall be chargeable to tax in the previous year inwhich it is credited by the public financialinstitution or the scheduled bank or |[a co-operativbank other than a primary agricultural creditsociety or a primary co-operative agricultural andrural development bank or] the State financialcorporation or the State industrial investmentcorporation or the public company to its profit andloss account for that year or, as the case may be, in Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. 16 which it is actually received by that institution orbank or corporation, whichever is earlter. Explanation.—For the purposes of this section,— (a)NationalHousingBank”TTLEaTtheNational Housing Bank established undersection 3 of the National Housing BankAct, 1987 (53 of 1987);National Housing Bank established undersection 3 of the National Housing BankAct, 1987 (53 of 1987); 2 4“public company means a company,— () which ts a public company within themeaning of section 3 of the Companies Act,1956 (1 of 1956);meaning of section 3 of the Companies Act,1956 (1 of 1956); Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. 16 which it is actually received by that institution orbank or corporation, whichever is earlter. Explanation.—For the purposes of this section,— (a)NationalHousingBank”TTLEaTtheNational Housing Bank established undersection 3 of the National Housing BankAct, 1987 (53 of 1987);National Housing Bank established undersection 3 of the National Housing BankAct, 1987 (53 of 1987); 2 4“public company means a company,— () which ts a public company within themeaning of section 3 of the Companies Act,1956 (1 of 1956);meaning of section 3 of the Companies Act,1956 (1 of 1956); (i) whose main object is carrying on thebusiness of providing long-term finance forconstruction or purchase of houses in Indiafor residential purposes; and (iu) which is registered in accordance withthe Housing Finance Companies (NHB)Directions, 1989, given under section 30and section 31 of the National HousingBank Act, 1987 (53 of 1987); Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. 17 (c}“public financial institution” shall have themeaning assigned to it in section 4A of theCompanies Act, 1956 (1 of 1956);meaning assigned to it in section 4A of theCompanies Act, 1956 (1 of 1956); (d)“scheduled bank” shall have the meaningassigned to it in clause (iu) of theExplanation to clause (vila) of sub-section(1) of section 36;assigned to it in clause (iu) of theExplanation to clause (vila) of sub-section(1) of section 36; (e)“sotate financial corporation” means financial corporation established undersection 3 or section 3A or an institutionnotified under section 46 of the StateFinancial Corporations Act, 1951 (63 of1951);financial corporation established undersection 3 or section 3A or an institutionnotified under section 46 of the StateFinancial Corporations Act, 1951 (63 of1951); (f)“otate industrial investment corporation”means a Government company within themeaning of section 617 of the CompaniesAct, 1956 (1 of 1956), engaged in thebusiness of providing long-term finance forindustrial projects].means a Government company within themeaning of section 617 of the CompaniesAct, 1956 (1 of 1956), engaged in thebusiness of providing long-term finance forindustrial projects]. (g)“co-operative bank”, “primary agriculturalcredit society” and “primary co-operativecredit society” and “primary co-operative Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. 18 agricultural and rural development bank”shallhave|themeaningrespectivelyassigned to them in the Explanation tosub-section (4) of section 8OP]” 1Q,The said provisions of Section 43D of the Actwere further amended by Finance Act, 2017, with elftecfrom01.04.2018and the Co-operative Banks were alsobrought at par with the Public Financial Institutions orSchedule Banks. 11.Under Section 43D of the Act itself clearlyprovided that interest on such bad debts/doubtful debtscannot be taxed, unless the concerned FinancialInstitutions or Schedule Banks or Co-operative Bankscredits such interest in its Profit and Loss Account forthat year or actually receives such interest from theborrowers. Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. 19 1Q,The said provisions of Section 43D of the Actwere further amended by Finance Act, 2017, with elftecfrom01.04.2018and the Co-operative Banks were alsobrought at par with the Public Financial Institutions orSchedule Banks. 11.Under Section 43D of the Act itself clearlyprovided that interest on such bad debts/doubtful debtscannot be taxed, unless the concerned FinancialInstitutions or Schedule Banks or Co-operative Bankscredits such interest in its Profit and Loss Account forthat year or actually receives such interest from theborrowers. Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. 19 12,The purpose of such protection given tothese Financial Instructions or Banks was not to allowtaxability of the interest on bad debts/doubttful debts oNon-Periorming Assets (NPA’s) unless they actuallyreceived such interest income or such interest incomewas credited in their Profit and Loss Account by theconcerned Financial Institution or the Schedule Bank orthe Co-operative Banks after.01.04.2018 13.Thus the provisions of Section 43D of the Actitself excludes the taxability of the such interest income. 14,Even without recourse to the concept of non-taxability of interest in such cases under Section 43D ofthe Act, the Division Bench in the case of)CIT vs.Canfin Homes Limited(Supra) on the basis of theinterpretation given to Section 145 providing for“Method of Accounting” in the Act held that suchinterest income on bad debts/doubtful debt cannot be Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. 20 taxed, unless it is actually received or credited in theProfit and Loss Account of the assessee concerned inthat year. 15)Another Co-ordinate Bench oft this Court iITA No.471/2013 CIT vs. Urban Co-operative BankLimited, Shimogahas followed the aforesaid decisionot the Division Bench in the case of CIT vs. CanfinHomesLimited1nNitsjudgmentrendered&#300.06.201, In the case of a Co-operative Bank also,Though the learned counsel for Revenue submittedbefore us that in Special Leave Petition filed by theRevenue against the said decision dated.300.06.2012was dismissed by the Hon’ble Supreme Court on12.01.2015, the question of law was leit open,However, we do not find any reasons to take a differentview from the one taken by the Division Bench of thisCourt in the case of.CIT vs. Canfin Homes Limited2even in the case ofCo-Operative Banksas well. Date of order: 23.03.2018 ITA No.200014/2015 C/WITA Nos.200016/2015, 200015/2015 & 200013/2015The Commissioner of Income Tax (Appeals) & another vs The BiapurDistrict Central Co-Op. Bank Ltd.. DQ 16,We are in respectful agreement with the viewexpressed by the Co-ordinate Bench in the case ofCIT vs. Canfin Homes Limited(supra). Since the saidcontroversy therefore stands concluded by the DivisionBench of this Court, in our considered opinion, nosubstantial question of law arises on the said issue alsosought to be raised by the Revenue in the presentappeals. 17,Thus, no substantial question of law arisesin these appeals filed by the Revenue and therefore theyare liable to be dismissed at the threshold of admissionstage. We accordingly dismiss these appeals. No costs. Sd/- Sd/- JUDGE JUDGE RSP