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2019 (1) TMI 943 - ITAT AHMEDABADDepreciation claimed categorized under HFT or AFS - investments Held for Trading (HFT) and Available for Sale (AFS) - Amortization of premium over the period remaining to maturity - block of assets is defined u/s. 2(11) - Held that:- In the year in which securities was acquired, it was shown under the head investment without specifying category. It is quite difficult for us to conclusively to hold that these securities were held in HFT or AFS. Orders of both Revenue authorities are silent on this aspect. We have extracted finding of the AO as well as CIT(A). We have noticed the accounting treatment given by the assessee. Faced with this difficult, we deem it appropriate to set aside this issue to the file of AO for re-adjudication. The ld.AO shall first determine the issue whether these securities are identifiable under category HFT or AFS, and if yes, then according to case of Rajkot District Cooperative Bank [2014 (3) TMI 110 - GUJARAT HIGH COURT] depreciation is to be allowed. Otherwise, the AO shall decide the issue in accordance with law.
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