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2013 (12) TMI 888 - ITAT HYDERABADDepreciation on investments held to maturity - Held that:- Following assessee’s own case for AY 2006-07 - Value of the securities at cost or market value whichever is less should be accepted for income tax even if the banks in their books do not value on that basis - it is an accepted proportion that investment made by the bank to comply with the SLR requirement would constitute their stock in trade and depreciation in value of the same is an allowable deduction - Decided against Revenue. Broken period interest - Held that:- Following assessee’s own case for AY 2006-07 - The broken period interest included in the purchase price of Government securities held by the banking company to comply with SLR requirement is entitled to deduction - Decided against Revenue. Disallowance u/s 14A - Held that:- Following assessee’s own case for AY 2006-07 - The disallowance is to be made on reasonable basis - The disallowance is reduced to 2% expenditure as relating to earning of the exempted income u/s 14A - Decided against Revenue. Amortization of public issue expenses - Held that:- Following assessee’s own case for AYs 2000-01 to 2004-05 - The first and primary rule of construction is that the intention of the legislature must be found in the words used by the legislature itself - The expenses are disallowed u/s 35D - Decided against assessee. Provision for bad and doubtful debts - Held that:- Following assessee's own case for earlier years - Irrespective of the debit to the profit and loss account on account of provision for bad and doubtful debts (PBDD), an Assessee is entitled to 10% of the AARA as deduction u/s.36(1)(viia) of the Act - Decided against assessee. Disallowance of unrealized interest - Held that:- Following assessee’s own case for AY 2006-07 - Income which was earlier recognised is not to be allowed in the subsequent year in case it is permissible for the assessee to write off such income in concerned assessment year when it was found that it was not recoverable - Decided in favour of assessee. Provision for leave encashment - Held that:- In view of the amendment to Section 43B by the introduction of Sub Section (f) which provides for allowing deduction on leave encashment only on the actual payment - There is nothing on record to show that the assessee has parted with the amount for making payment for the leave encashment - This was merely a provisions made by the assessee - Decided against assessee. Debts written off by the non-rural branches - Held that:- Following Catholic Syrian Bank Vs. CIT [2012 (2) TMI 262 - SUPREME COURT OF INDIA] - The same is allowed as deduction - Decided in favour of assessee.
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