TMI Blog2014 (2) TMI 932X X X X Extracts X X X X X X X X Extracts X X X X ..... ciation is to be aggregated scrip wise and only net depreciation, if any, is required to be provided for in the accounts. Decisions in DCIT Vs. Kallappanna Awade Ichalkaranji Janata Sahakari Bank Ltd. [2014 (1) TMI 754 - ITAT PUNE] and ACIT vs. The Bank of Rajasthan Ltd. [2010 (12) TMI 894 - ITAT, Mumbai] followed.- In case of banks, the premium paid in excess of face value of investments classified under HTM category which has been amortised over the period till maturity is allowable as revenue expenditure since the claim is as per RBI Guidelines and CBDT also has directed to allow such premium - Nothing contrary was brought to our notice against the order of the Tribunal, therefore, we find no infirmity in the order of the CIT(A) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ind the Tribunal in the case of DCIT Vs. Kallappanna Awade Ichalkaranji Janata Sahakari Bank Ltd. vide ITA No.449/PN/2012 order dated 05-8-2013 for A.Y. 2008-09 has dismissed the appeal filed by the Revenue by holding as under : "10. We have considered the rival arguments made by both the sides, perused the orders of the Assessing Officer and the CIT(A) and the Paper Book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find an identical issue had come up before the Tribunal in the case of Nahsik Merchant Cooperative Bank Ltd. (Supra). We find the Tribunal has discussed the issue and dismissed the grounds raised by the Revenue by holding as under : "4. After going through rival submissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of banking (Including providing credit facilities) carried on by a co- operative society with its members shall be included in the definition of 'income' (with effect from 1st April, 2007)". 6. Cooperative bank unlike other commercial banks are subjected to dual control from both RBI as well as from state cooperative department. The accounting treatment for a cooperative bank is therefore a result of guidelines from both the controlling authorities. Ordinarily a deduction is not available to an assessee unless specifically provided under the Act. This is irrespective of accounting treatment provided by the assessee in its books of accounts. But at the same time it was well settled that deduction expressly mentioned under the Act are not e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 26.11.2008, on 'Assessment of Bank - check list for deduction, states as under: "As per RBI guidelines dated i6th October, 2000, the investment portfolio of the banks is required to be classified under three categories viz. Held to Maturity (HTM), Held for Trading (HFT) and Available for Sale (AFS). 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 amortised over the period remaining to maturity. In the case of HFT and AFS securities forming stock in trade of the bank, the depreciation/ appreciation is to be aggregated scrip wise and only net depreciation, if any, is required to be provided for in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the addition. Accordingly, the order of the Ld.CIT(A) is upheld and the grounds raised by the Revenue are dismissed." 3.1 Since the Ld. CIT(A) while allowing the claim of the assessee has followed the decision in the case of Kallappanna Awade Ichalkaranji Janata Sahakari Bank Ltd. (Supra) which has been upheld by the Tribunal and since nothing contrary was brought to our notice against the order of the Tribunal, therefore, we find no infirmity in the order of the CIT(A) deleting the disallowance. Accordingly, the order of Ld.CIT(A) is upheld and the grounds raised by the Revenue are dismissed. 4. In the result, the appeal filed by the Revenue is dismissed. Pronounced in the Open court on this the 29th day of October 2013. - - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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