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2015 (4) TMI 1088 - AT - Income TaxAddition made on account of unclaimed liability appearing in the Balance Sheet - Held that:- The assessee continues to recognize the liability and once the liability has been so recognized by the assessee, there is no merit in treating the same as income of the assessee though some of the amounts may not be recoverable by application of provisions of Limitation Act. - Decided in favour of assessee Addition on account of premium paid on Government securities - Held that:- The issue before the Tribunal in assessee’s own case in assessment year 2009-10 and following the same parity of reasoning, we uphold the order of CIT(A) in allowing the deduction on account of amortization premium paid on Government securities to hold the Securities held by the Bank are in the nature of Stock-in-Trade Both the authorities below have merely gone on the nomenclature of the head under which the Securities are held. In our considered view, nomenclature cannot be decisive for the assessee Bank. We, therefore, hold that Addition made on account of premium paid on investment in Government securities is to be deleted - Decided in favour of assessee Allowability of broken period interest Held that:- There is no difference in the amount in tax, whether one adopts the assessee's method or the Department's method. Under either method, the same amount is offered for tax. The Department has not been able to show in this case as to why the method adopted by the assessee-bank ought to be rejected. On the other hand, the Department has not been able to explain as to why broken period interest received should be taxed whereas broken period interest payment should be disallowed, See American Express International Banking Corporation Versus Commissioner Of Income-Tax [2002 (9) TMI 96 - BOMBAY High Court]- Decided against Revenue.
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