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2015 (6) TMI 973 - AT - Income TaxDisallowance on account of expenses being premium paid on SLR (Statutory Liquidity Ratio) investments - CIT(A) deleted the disallowance - Held that:- Amortization of premium is allowable in accounting practice. As per RBI’s guidelines, amortization of premium in case of assets treated as HTM (Held to Maturity) (Investments) is to be amortized divided equally over the period which is remaining for their maturity. Same has been done by assesse. Amortization of expenses has been recognized in similar circumstances in case of premium of debentures, which was also held as investments in different judgments including that of Hon’ble Supreme Court in case of Madras Industrial Investment Corp. Ltd. Vs. CIT(A) (1997 (4) TMI 5 - SUPREME Court) relied by assesse. In view of this, CIT(A) allowed the claim of assesse. The order of CIT(A) is also supported by the decision of The Ahmednagar Merchants Co-op Bank Ltd. Vs. ACIT [2015 (6) TMI 552 - ITAT PUNE ]. In view of above decision, we are not inclined to interfere in the finding of CIT(A) who has deleted the disallowance made on account of expenses being premium paid on SLR (Statutory Liquidity Ratio) investments. - Decided in favour of assessee.
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