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2016 (6) TMI 1031 - CALCUTTA HIGH COURTAmortization of premium on investment - Held that:- If the income of the assessee is deductible under section 80P, then whether the income has been reduced by the amortization or not becomes only a question of academic interest which does not involve any effect on the Revenue. There has been no loss of revenue. In such a case, insisting upon refusing to allow the amortization would result in insisting upon following a practice, contrary to the circular issued by the Reserve Bank of India which is not desirable. For the aforesaid reasons, we are of the opinion that the amortization may be permitted so long as the deduction is available to the assessee under section 80P. The question formulated at the time of admission of the appeal, is as follows : “Whether the Income-tax Appellate Tribunal has substantially erred in law in holding that the amortization of premium on investment of ₹ 5,60,614/- is capital expenditure ? The question is already answered by our discussion made above in favour of the assessee.
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