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2016 (12) TMI 1760 - AT - Income TaxDisallowing the amortization of premium on Government Securities - Held that - We find that the very same issued has been considered by the Coordinate Bench of this Tribunal in assessee s own case (supra) for the Assessment Year 2008-09. Therefore we set aside the order of the Commissioner of Income Tax (Appeals) and remit the matter back to the file of the AO for fresh adjudication keeping in view the decision of the Coordinate Bench of this Tribunal for the Assessment Year 2008-09. Hence this ground of appeal raised by the assessee is allowed for statistical purpose. Disallowing the amortization of loss on account of merger - Held that - CIT(A) correctly by considering the provisions of the Act disallowed the claim made by the assessee. So far as RBI guidelines with regard to the amortization of losses is concerned in view of the specific provision provided by section 72AB of the Act in our opinion RBI guidelines cannot prevail over the Income Tax Act. We further observed that business losses and unabsorbed depreciation of amalgamating co-operative bank i.e. Bobbili Co-operative bank can be set off against the income of successor co-operative bank i.e. amalgamated co-operative bank (assessee) if the amalgamation is within the meaning of section 72AB. In the present case the amalgamating company i.e. Bobbili Co-operative bank not filed return of income as required u/s 72AB. Therefore the claim of the assessee cannot be allowed. We find that the CIT(A) has correctly decided the issue and disallowed the claim of the assessee. The issue involved in this appeal i.e. loss on account of merger has been considered by the Coordinate Bench of this Tribunal in assessee s own case for the Assessment Year 2008-09 and held that the assessee is not eligible for claim. Allowance of depreciation by treating the transaction of merger as one of goodwill acquired by the appellant - Held that - Goodwill means it is an intangible asset that arises as a result of acquisition of one company by another for a premium value. In this case the assessee has not paid any amount to amalgamating company. The assessee has only taken losses of amalgamating company i.e. Bobbili Co-operative bank. Therefore the assessee has not acquired any goodwill. The Ld. CIT(A) by considering the entire facts of the case has passed a detailed order by considering the provisions of law. TDS u/s 194A - Non-deduction of TDS under section 40(a)(ia) - Held that - no TDS needs to be deducted on interest paid by any cooperative society too members. In this regard the Bench observed that the provisions of section 2(19) or section 194A(3) of the I.T. Act do not make any distinction between the cooperative societies carrying on banking business or other cooperative societies. Respectfully following the decision of Hon ble ITAT in assessee s case for Assessment Year 2007-08 the Assessing Officer is directed to delete the impugned disallowance. Disallowance of provision for deduction in Government securities - Held that - AO as well as Commissioner of Income Tax (Appeals) gave a categorical finding that the assessee has made a mere provision as per the accounting practice followed by the assessee and that the reliability is not yet crystallized during the assessment year under consideration therefore both the authorities below have disallowed the claim of the assessee. Even before us the assessee is not able to establish that the claim made by the assessee is based on actual payment for the assessment year under consideration. It is also a mere provision made for the purpose of accounting practice followed by the assessee. Under these facts and circumstances of the case we are of the opinion that the Commissioner of Income Tax (Appeals) has decided the issue correctly hence we find no infirmity in the order of the Commissioner of Income Tax (Appeals) which is hereby confirmed and the ground of appeal raised is dismissed. Amortization of premium paid for acquisition of HTM securities - Held that - We find in the Assessment Year 2008-09 amortization of premium on government securities has been dissolved by the Assessing Officer on the ground that it is a contingent liability. The Commissioner of Income Tax (Appeals) has confirmed the order of the Assessing Officer. On appeal ITAT remanded the matter back to the Assessing Officer for fresh consideration. In the year under consideration the CIT (Appeals) allowed the ground raised by the assessee by following the CBDT instruction No. 17/2008 dated 26/09/2008 and also the decision of the in the case of Rajkot District Co-operative Bank 2014 (3) TMI 110 - GUJARAT HIGH COURT directed the Assessing Officer to allow this claim. In our opinion to maintain a consistency the issue has to be remitted back to the Assessing Officer to consider the factual matrix of the case and decide in accordance with law. We therefore set aside the order passed by the Commissioner of Income Tax (Appeals) and direct the Assessing Officer to consider the issue afresh
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