Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 1267 - AT - Income TaxAddition on provision for loss on Government Securities - Held that:- The issue arising in the present appeal is identical to the issue decided in in Pune District Central Co. Operative Bank Ltd. Vs. Addl.CIT [2015 (4) TMI 726 - ITAT PUNE ] wherein held in case of banks, the premium paid in excess of face value of investments classified under HTM category which has been amortised over the period till maturity is allowable as revenue expenditure since the claim is as per RBI Guidelines and CBDT also has directed to allow such premium. In view of above, the assessee is justified in contending that the amortization of premium in excess of face value securities as HTM, period remaining difference was found reasonable. Accordingly, the disallowance made by the Assessing Officer claimed as amortization of premium expenditure for HTM securities by payment of premium over and above the face value of such securities is directed to be allowed. Also see CIT Vs. HDFC Bank Ltd [2014 (8) TMI 119 - BOMBAY HIGH COURT] - Decided in favour of assessee Addition made on account of provision for interest on NPAs - Held that:- Similar issue of allowability of the provision made on account of interest on NPAs, arose before Pune Bench of the Tribunal in the case of Shri Yashwant Sahakari Bank Ltd. Vs. ITO [2014 (4) TMI 1118 - ITAT PUNE] held that the interest on NPA advance cannot be treated as “accrued” to the assessee.- Decided in favour of assessee Addition towards provision for Standard Assets made as per the guidelines of RBI - Held that:- The issue raised is squarely covered against the assessee by the order of Pune Bench of the Tribunal in The Sindhudurg Dist. Central Co-op Bank Ltd. Vs. ITO [2012 (3) TMI 492 - ITAT PUNE] wherein held that claim for deduction of an expenditure is liable to be governed by the provisions of the Act and not merely on account of the RBI guidelines. In our view, the ratio of the judgment of the Hon’ble Supreme Court the case of Southern Technologies Ltd. (2010 (1) TMI 5 - SUPREME COURT OF INDIA ) clearly applies to the present case and the claim of the assessee has been rightly rejected by the lower authorities - Decided against assessee
|