Page 326 - NHB AR 2020-21-3 complete- Print (1)
P. 326
38. Prior Period Items
During the year, the Bank has booked expenditure amounting to around ` 0.68 Crore in
the nature of prior period.
39. Corporate Social Responsibility Activities
The National Housing Bank was established under the National Housing Bank Act,
1987, and hence the provisions relating to CSR under the Companies Act, 2013 are
not applicable. However, as a voluntary act, the Bank contributed `1 crore to Prime
Minister’s National Relief Fund (PMNRF) on 30-06-2021.
40. Refund of compound interest amount to borrowers as per Hon’ble Supreme Court
judgement
Pursuant to the RBI Notification No DOR.STR.REC.4/21.04.048/2021-22 dated April 07,
2021 on Supreme Court Order, NHB has reversed its income, as in terms of the judgment,
Bank cannot charge ‘interest on interest’ on the outstanding amount of PLIs. Interest on
interest meant for refund to PLIs amounting to ` 9.09 Crore has been provided for as on
June 30, 2021.
41. Income tax
For assessment years 2003-04 to 2009-10 (excluding 2007-08) penalty proceeding was
initiated by the Income Tax Department amounting to ` 130.56 crore on disallowance
of Bank’s claim u/s 36(1)(viii) of the Income Tax Act, 1961 and business loss. The same
has been either already paid/adjusted against refund of various Assessment Years.
The Bank had preferred appeals before ITAT against the order of respective authorities
and paid the taxes due which was shown as advance tax. Further, ITAT vide its order
dated 20.02.2017, waived off penalty earlier imposed by the Assessing Officer (AO)
with respect to Bank’s claim u/s 36(1)(viii) of the Income Tax Act, 1961. The Income
Tax Department filed an appeal against the said order in the Delhi High Court. Delhi
High Court vide its order dated 28.08.2018 dropped the penalty proceedings. No further
appeal has been filed by the Income Tax Department before the Hon’ble Supreme Court.
The Bank has further filed an application for providing the appeal effect of the Delhi
High Court order. The same is pending with the Income Tax Department.
In respect of disallowance of business loss of ` 150.45 crores for the AY 2003-04, ITAT
restored it back to the Assessing Officer (AO). The case has been finalized by the AO in
FY 2017-18 at the income originally assessed. The Bank has filed an appeal against the
said order of the AO before Commissioner of Income Tax, Appeal [CIT) (A)], which was
decided against the Bank by Hon’ble CIT(A) vide her order dated 31.12.2018. The Bank
306 | Annual Report 2020-21
During the year, the Bank has booked expenditure amounting to around ` 0.68 Crore in
the nature of prior period.
39. Corporate Social Responsibility Activities
The National Housing Bank was established under the National Housing Bank Act,
1987, and hence the provisions relating to CSR under the Companies Act, 2013 are
not applicable. However, as a voluntary act, the Bank contributed `1 crore to Prime
Minister’s National Relief Fund (PMNRF) on 30-06-2021.
40. Refund of compound interest amount to borrowers as per Hon’ble Supreme Court
judgement
Pursuant to the RBI Notification No DOR.STR.REC.4/21.04.048/2021-22 dated April 07,
2021 on Supreme Court Order, NHB has reversed its income, as in terms of the judgment,
Bank cannot charge ‘interest on interest’ on the outstanding amount of PLIs. Interest on
interest meant for refund to PLIs amounting to ` 9.09 Crore has been provided for as on
June 30, 2021.
41. Income tax
For assessment years 2003-04 to 2009-10 (excluding 2007-08) penalty proceeding was
initiated by the Income Tax Department amounting to ` 130.56 crore on disallowance
of Bank’s claim u/s 36(1)(viii) of the Income Tax Act, 1961 and business loss. The same
has been either already paid/adjusted against refund of various Assessment Years.
The Bank had preferred appeals before ITAT against the order of respective authorities
and paid the taxes due which was shown as advance tax. Further, ITAT vide its order
dated 20.02.2017, waived off penalty earlier imposed by the Assessing Officer (AO)
with respect to Bank’s claim u/s 36(1)(viii) of the Income Tax Act, 1961. The Income
Tax Department filed an appeal against the said order in the Delhi High Court. Delhi
High Court vide its order dated 28.08.2018 dropped the penalty proceedings. No further
appeal has been filed by the Income Tax Department before the Hon’ble Supreme Court.
The Bank has further filed an application for providing the appeal effect of the Delhi
High Court order. The same is pending with the Income Tax Department.
In respect of disallowance of business loss of ` 150.45 crores for the AY 2003-04, ITAT
restored it back to the Assessing Officer (AO). The case has been finalized by the AO in
FY 2017-18 at the income originally assessed. The Bank has filed an appeal against the
said order of the AO before Commissioner of Income Tax, Appeal [CIT) (A)], which was
decided against the Bank by Hon’ble CIT(A) vide her order dated 31.12.2018. The Bank
306 | Annual Report 2020-21
