JUDGMENT

K.S. Jhaveri, J. - By way of these appeals, the appellant has challenged the judgment and order passed by the Tribunal whereby the Tribunal has dismissed the appeal confirming the order passed by the CIT(A) and AO.

2. This court while admitting the appeals has framed following questions of law:-

D.B. Income Tax Appeal No.602/2008 admitted on 19.08.2010:-

1. Whether under the facts and circumstances, initiation of proceedings under Section 147 of the Income Tax Act in respect of Assessment Year 1998-99 are legal and proper?

2. Whether Tribunal was justified in holding the additions made by the AO towards non-recoverable interest on NPA debts is inconformity with the requirement of Section 43D of the Act?"

D.B. Income Tax Appeal No.202/2009 admitted on 19.09.2011:

"Whether Tribunal was justified in holding the additions made by the AO towards non-recoverable interest on NPA debts is inconformity with the requirement of Section 43D of the Act?

3. Counsel for the appellant contended that the AO has issued notice under Section 148 and proceedings under Section 147 of the I.T. Act were initiated against the appellant relying on the decision of the Supreme Court in the case of Mad