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2013 (4) TMI 769 - AT - Income TaxAddition on expenditure towards amortization of investment held till maturity - Held that:- ITAT, Mumbai Bench, in the case of ACIT vs. The Bank of Rajasthan Ltd. (2010 (12) TMI 894 - ITAT, Mumbai) has held that in case of banks, the premium paid in excess of face value of investments classified under HTM category which has been amortised over the period till maturity is allowable as revenue expenditure since the claim is as per RBI Guidelines and CBDT also has directed to allow such premium. It has also been held in the case of Catholic Syrian Bank Ltd. vs. ACIT [2011 (2) TMI 1303 - ITAT COCHIN ] that amortisation on purchase of Government securities was made as per prudential norms of the RBI and same was allowable deduction. In view of above, assessee was justified in contending for amortisation of premium paid in excess of face value of securities held to maturity (HTM) category or period remaining till maturity was found reasonable by the CIT(A). Accordingly addition made by the Assessing Officer by disallowing amount towards amortisation of Government Securities (HMT) was correctly deleted. - Decided against revenue
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