Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (11) TMI 643 - AT - Income TaxAddition of amortization of premium paid on investment - amortization expenditure on government securities held as HTM - HELD THAT:- Investments classified under HTM category need not be marked to market and are carried at acquisition cost unless these are more than the face value, in which case the premium should be amortized over the period remaining to maturity. This was explained by the CBDT vide Instruction No. 17 of 2008 dated 26.11.2008 according which investment of banks clarified under HTM category need not be marked to market and are carried at cost unless these are more than face value, in which case, the premium should be amortized over the period remaining to maturity. The Tribunal in the case of State Bank of Saurashtra Bhavnagar v. DCIT [2004 (12) TMI 285 - ITAT AHMEDABAD-A] , Catholic Syrian Bank Ltd. v. ACIT [2009 (8) TMI 858 - ITAT COCHIN] held that in view of Instruction dated 26.11.2008, deduction of amortized expenditure on premium on Government Securities is allowable as expenditure. In the case of CIT-Rajkot-2 v. Rajkot District Co-Operative bank Ltd. . [2014 (3) TMI 110 - GUJARAT HIGH COURT] wherein it was held that in terms of Circular No. 17 dated 26.11.2008, where Co-operative Bank Ltd. purchases certain Government Securities in order to maintain statutory liquidity ratio (SLR) at a price higher than their face value, premium so paid has to be amortized for remaining period of maturity. In the light of above facts and circumstances, we are of the considered opinion, the amortization expenditure on government securities held as HTM are allowable as deduction. - Decided in favour of assessee Unexplained investment in Multi/National Stock Exchange - CIT-A deleted the addition - HELD THAT:- Addition is made without providing information to the assessee for rebuttal and details of transactions nature and company in which investment is made. Therefore, we do not find any error in the order of ld.CIT(A), accordingly same is upheld. Therefore, these grounds of appeal is therefore dismissed.
|