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2015 (10) TMI 929 - AT - Income TaxAddition on account of valuation of closing stock of securities - CIT(A) deleted the addition - Held that:- It has not been disputed by the Department that change in method of valuation of securities was in accordance with RBI directions and non-adherence thereto by Scheduled Banks will have attracted adversity with RBI guidelines. The Scheduled Banks cannot refuse to implement such directions. Therefore, the change in pattern of valuation in respect of impugned securities is bona fide. The Hon'ble Uttarakhand High Court in the case of CIT vs. Nainital Bank Ltd.(2007 (3) TMI 253 - UTTARANCHAL HIGH COURT) has upheld the judgment of Tribunal holding that the assessee being a banking company, the RBI guidelines were binding on it and therefore, valuation of investment on the basis of RBI guidelines was justified. In view of the above, we find no infirmity in the order of the ld. CIT(A). The assessee's pattern of valuation of securities being in accordance with RBI directions cannot be interfered with. Our view is fortified by the judgement of Hon'ble Uttarakhand High Court in the case of CIT vs. Nainital Bank Ltd. (supra). Thus the order of the ld. CIT(A) on the issue of securities is upheld. - Decided against revenue. Disallowance of expenses claimed to have been paid to various clubs - CIT(A) deleted the addition - Held that:- Apropos club fee expenses, various judicial authorities in the case of Lloyd Steel Industries Ltd. vs. ACIT [2007 (10) TMI 459 - ITAT MUMBAI ] and Gujarat State Export Corporation Ltd. vs. CIT (1993 (9) TMI 52 - GUJARAT High Court) and Otis Elevators Co. Ltd. vs. CIT (1991 (4) TMI 53 - BOMBAY High Court) have also laid down the same view i.e. payment of club fees made with a view to enable the assessee to improve its business relation and prospectus is allowable expenditure. Thus in view of the above judgements, we uphold the order of the ld. CIT(A). - Decided against revenue.
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