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2016 (4) TMI 897 - AT - Income TaxDisallowance in the nature of amortization of premium paid on Held to Maturity(HTN) government securities - Held that:- There can hardly be any dispute that the assessee has to mandatorily comply with market regular RBI’s circulars issued from time to time including those dealing with the instant issue of investments in securities, their classification and other procedural aspects. There is further no dispute about the assessee having held its HTM securities as per the master circular dated 01-07-2009 on investments by Primary (Urban) Co-operative Banks. We are conscious of the fact that noncompliance thereof entails penal consequences which are nowhere forthcoming or discussed by the lower authorities. The assessee files before us its statement of details of govt. security for the purpose of maintaining service lending ratio right from financial year 2005-06 to 2009-10 along with its relevant Board’s resolution classifying the same to be in permanent category. We have already recorded that it has been allowed the impugned relief throughout without any disallowance being made. Copies of the assessment orders for assessment year 2007-08 to 2009-10 form part of the records. We come to the CIT(A)’s findings under challenge alleging the assessese as not to have filed the relevant details. We are of the opinion that once the above extracted portion comprises a tabulation chart of permanent category security right from financial year 2005-06 to 2009-10, no such case of non-furnishing of relevant details can be stated to have arisen in the impugned assessment year. The CIT(A)’s reasoning is therefore not sustainable. We find that the hon’ble jurisdictional high court in CIT vs. Rajkot Dist. Central Cooperative Bank (2014 (3) TMI 110 - GUJARAT HIGH COURT) takes note of circular no. 17 dated 26-11-2008 wherein the said assessee had purchased govt. securities at a price higher than their face value for holding that the relevant premium paid thereupon has to be amortized for remaining period of maturity. - Decided in favour of assessee
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