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2020 (3) TMI 877 - AT - Income TaxLoss of valuation of Held to Maturity (HTM) securities when HTM securities are capital in nature - HELD THAT:- It is evident that this issue of allowability of loss in value of HTM securities was decided in favour of the assessee and against the Revenue in assessee‟ own case [2019 (6) TMI 1456 - ITAT PUNE] by the Co-ordinate Bench of the Tribunal, Pune. Considering the settled nature of the issue, we are of the opinion that pending of the appeal before the Hon‟ble Supreme Court is not a ground for not adjudicating the issue before us. Accordingly, we find that the order of the Ld. CIT(Appeals) is fair and reasonable and same does not call for any interference. Hence, grounds raised by the Revenue in both the appeals are dismissed. Provision for bad and doubtful debts as per Section 36(1)(viia) - HELD THAT:- AR has fairly admitted that the Tribunal in assessee’s own case in assessment year 2010-11 has restricted deduction u/s. 36(1)(viia) to the extent of provision made. Thus, in view of the admitted position, this ground of appeal by the assessee qua the claim of deduction u/s. 36(1)(viia) is allowed to the extent of provision actually made for bad and doubtful debts in the books of account. Accordingly, the ground No. 2 of the appeal is partly allowed in favour of assessee. Disallowance u/s.14A r.w.r. 8D(2)(iii) - HELD THAT:- No disallowance u/s. 14A is warranted in respect of shares held by the assessee as stock in trade. Disallowance made u/s. 40(a)(ia) on short deduction of tax - HELD THAT:- Hon‟ble Calcutta High Court in the case of Commissioner of Income Tax Vs. S K Tekriwal [2012 (12) TMI 873 - CALCUTTA HIGH COURT] deleted the disallowance made u/s. 40(a)(ia) on short deduction of tax. Following the parity of reasons the disallowance made in the assessment year under appeal is deleted. Applicability of the provision u/s.115JB(2)(b) - HELD THAT:- As perusing the orders of the Assessing Officer and Ld. CIT(Appeals) and also the amended Clause(b) read with proviso to Section 211(2) of the Companies Act, 1956, we find there is a requirement of verification of facts whether the assessee is a Banking Company or Corporation or otherwise. The orders of the Assessing Officer or the Ld. CIT(Appeals) are silent on the aspect of the arguments of the assessee that it is not a Banking Company. To that extent, the order of the Ld. CIT(Appeals) is not a speaking order as per Section 250(6) of the Act. Therefore, we are of the opinion that the order of the Ld. CIT(Appeals) stands erroneous so far as the interpretation of Explanation 3 of the Section 115JB of the Act. Explanation commencing on or before 01.04.2012 should be properly interpreted by the Ld. CIT(Appeals) in the remand proceedings. In view of the above facts and circumstances, we remand the issue back to the file of the Ld. CIT(Appeals) who shall pass a speaking order after hearing the submissions of the assessee on the aspect of applicability of provision 115JB
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