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2015 (8) TMI 272 - HC - Income TaxDisallowance u/s 36(1)(vii) - ITAT allowed claim - Held that:- Although as rightly contended by the learned Standing Counsel appearing for the appellant, it is true that the assessee had failed to adduce evidence as directed by the Tribunal in the first round of the litigation, the main reason which prevailed upon the Assessing Officer to disallow the deduction when the impugned order was passed after the matter was remanded to him, is his conclusion that the R.B.I guidelines to value the unsecured shares on the basis of yield to maturity method are inapplicable and cannot be adopted. This view taken by the Assessing Officer is contrary to the principles laid down by this Court in the judgments in the cases of 'Nedungadi Bank Ltd.' (2002 (11) TMI 29 - KERALA High Court) and 'Lord Krishna Bank Ltd.' (2010 (10) TMI 860 - Kerala High Court ). It was therefore that the Tribunal reversed the view taken by the Assessing Officer and directed that the notional loss claimed on revaluation of the securities as deduction, be allowed. In our view, since as held by this Court, the R.B.I guidelines are applicable to the cases in question, the view taken by the Tribunal cannot be said to be illegal. Therefore, answering the questions of law framed against the Revenue
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