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2021 (10) TMI 862 - AT - Income TaxDisallowance u/s. 14A of the Act r.w. Rule 8D - contention of the ld. AR is that the assessee has investment in mutual funds and tax free bonds of out of its own funds out of share capital, free reserve and it exceeds the average value of investments during the AY 2013-14. No direct expenditure to earn exempt income, therefore section 14A r.w. Rule 8D - HELD THAT:- As these facts have not been examined by the CIT(Appeals) while deleting the addition holding that there is no exempt income, which is not correct. Accordingly, we set aside his order and restore this issue back to the Assessing Officer for examination and fresh decision in accordance with law after providing opportunity of hearing to the assessee. Disallowance of depreciation claimed on investments - assessee submitted that depreciation on investments in Govt. securities characterized as Securities Available For Sale (AFS) and Held for Trade (HFT) and that the depreciation on these investments has been made as per RBI guidelines - HELD THAT:- The issue is squarely covered in favour of the assessee by the judgment of case of Karnataka Bank Ltd. [2013 (7) TMI 656 - KARNATAKA HIGH COURT] wherein depreciation on investment in securities held for trading and available for sale was allowed. Being so, the CIT(Appeals) followed this judgment of the High Court. We do not find any infirmity in his order and confirm the same. This ground of the revenue is dismissed. Amortization of premium debited to profit and loss account and the amount claimed in the return of income - HELD THAT:- We find that this issue is covered by the order of this Tribunal in the case of Corporation Bank [2008 (12) TMI 745 - ITAT BANGALORE] in favour of the assessee. Being so, the CIT(Appeals) followed the same order of the Tribunal and hence we do not find any infirmity in the impugned order and the same is confirmed. Payment towards education fund to Karnataka State Co-operative Union, payment of annual subscription to Karnataka State Co-operative urban Federation and payment of benevolent fund to the bank's staff - HELD THAT:- There were no additions on this issue by the AO. However, the CIT(Appeals) has unilaterally considered these grounds and given relief. He fell into error in considering and adjudicating these grounds. Accordingly, the findings of the CIT(Appeals) in respect of these issues are vacated and the grounds raised by the revenue are allowed.
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