Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (6) TMI 311 - ITAT AHMEDABADDisallowance of provision for depreciation on government securities - CIT(A) deleted the addition - Held that:- Hon'ble Mumbai High court in case of CIT vs Bank of Baroda (2003 (3) TMI 80 - BOMBAY High Court) has held that "Depredation in value of investment held by bank was allowable as deduction more so when the loss was debited to P&L A/c which was reflected as provision for liability in the balance sheet and the share and securities were valued at cost on the asset side " Similar view has been taken in case of CIT vs Nedungadi Bank Ltd (2002 (11) TMI 29 - KERALA High Court). Therefore, depreciation in value was allowable even if specific instructions of the board were not there. Circular and instruction of the CBDT being squarely applicable on facts of assessee’s case, so CIT(A) was justified in allowing the same which needs no interference from our side. - Decided in favour of assesse. Disallowance of provision for bad debts - CIT(A) deleted the addition - held that:- It is proposed to amend the Explanation to the said item (fa) in view of the amendment to the definition of "scheduled bank" as given in the explanation to clause (viia) of sub-section 36 which excludes co-operative bank from purview of the said definition. This amendment is of consequential nature. This amendment will take effect retrospectively from 1st April, 2007 and will, accordingly, apply in relation to the assessment year 2007-08 and subsequent years. In view of this, no ambiguity remains on the issue and assessee had justified the computation of allowable deduction. In view of above, CIT(A) was justified in deleting the disallowance of the claim made u/s.36(1)(viia) - Decided in favour of assesse.
|