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2017 (5) TMI 838 - ITAT AHMEDABADDisallowance of provision for depreciation in value of government securities as per RBI guidelines - Held that:- We find that the aforesaid issue is squarely covered in favour of assessee in its own case for AY 2007-08 and AY 2009-10 as held 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 assessee. Premium amortization expenses on Government securities - Held that:- The issue is squarely covered in favour of assessee by the decision of the Hon’ble Gujarat High Court in case of CIT vs. Rajkot District Co-operative Bank Ltd.[2014 (3) TMI 110 - GUJARAT HIGH COURT] - Decided in favour of assessee. Claim of loss towards provision of standard assets - Held that:- Hon’ble Apex Court in the case of Southern Technologies Ltd.(2010 (1) TMI 5 - SUPREME COURT OF INDIA ) has clearly observed that by way of special provision under s.36(1)(viia), the banks are allowed to claim deduction subject to a ceiling or a limit. As per section 36(1)(viia), the banks are entitled to claim deduction certain prescribed percentages of the average advance made by the rural branches of such banks. However, relevant facts about the advance by the rural branch requires to be verified in the light of section 36(1)(viia) read with Rule 6ABA of the Income Tax Rules, 1963. Accordingly, we consider it expedient that the issue is revisited by the AO de novo in accordance with law in the light of provisions of section 36(1)(viia) of the Act after giving proper opportunity of being heard to the assessee.
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