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2019 (8) TMI 20 - HC - Income TaxDisallowance of Amortized Premium - HELD THAT:- As decided in RAJKOT DIST. CO-OP BANK LTD. C/O. AD. VYAS AND CO. [2014 (3) TMI 110 - GUJARAT HIGH COURT] the assessee as a cooperative bank was bound by the RBI directives - As per the directives, the assessee had to invest certain amounts in Government securities and to hold the same till maturity - In the process of acquisition, if there was any premium paid on the face value of the security, the loss had to be amortised - The instructions clearly provide for amortisation of premium paid on acquisition of securities when the same are acquired at the rate higher than the face value - Such amortisation would have to be for the remaining period of maturity - This precisely the Tribunal had directed in the order - no contrary instructions of CBDT are brought to notice - The instruction in question having been issued under section 119(2) of the Income Tax Act, 1961, would bind the Revenue - Decided against Revenue.
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