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2017 (12) TMI 1681 - AT - Income TaxDepreciation claimed on HTM category investments - AO disallowed the claim for depreciation on investments categorized as 'Held To Maturity' securities stating that the RBI guidelines do not allow depreciation to HTM category of investments - HELD THAT:- The assessee-bank had treated securities which are HTM as current assets / stock-in-trade. The value of the current assets / stock-in-trade was calculated at the end of the each financial year on cost or market price whichever is lower. By adopting such valuation of security, the depreciation / appreciation was duly offered for taxation under the Income-tax Act. The bank was consistently adopting the above method of valuation of security as per the RBI Guideline. The Income-tax Appellate Tribunal in assessee’s own case for earlier assessment years [2011 (5) TMI 988 - ITAT COCHIN] by following the judgment of the Hon’ble jurisdictional High Court in the case of CIT v. Nedungadi Bank Ltd. Reported [2002 (11) TMI 29 - KERALA HIGH COURT] had held that the depreciation on investment which are `Held to Maturity’ and forming part of stock-in-trade is entitled to claim the same as a deduction. - decided against revenue
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