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TMI Blog2015 (3) TMI 919X X X X Extracts X X X X X X X X Extracts X X X X ..... his appeal is with regard to an addition of Rs. 55,600/- made by the Assessing Officer on account of amortization of premium of investments held till maturity (HTM) by the bank. In this regard the brief facts are that assessee is a Co-operative Society engaged in the business of banking. It had purchased certain Government Securities which were held by the bank as held till maturity (HTM). The premium paid on the purchase of said securities i.e. the amount over and above the face value of the securities was amortized over the period till maturity. The premium so paid was claimed as a 'revenue expenditure' which has been disallowed by the Assessing Officer for the reason that the securities held by the bank are 'capital investments' and not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee noticing that the contribution has been paid by the assessee within the grace period of five days under the Employees' Provident Fund Scheme, 1952 and therefore it would not suffer any disallowance following the decision of the Hon'ble Madras High Court in the case of CIT vs. Saleem Co-operative Spinning Mills Ltd., (2006) 284 ITR 621 (Mad). Apart therefrom the CIT(A) in para 7.3 of his order has noted that in any case the said contribution was paid before the due date of filing of return of income as per Section 139(1) of the Act, and following the judgement of the Hon'ble Delhi High Court in the case of CIT vs. AIMIL Ltd., 321 ITR 508 (Delhi), no disallowance was merited. 6. In the above background, we have considered the object ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest' other than the interest on securities. The assessee before us is a co-operative society which is inter-alia engaged in the business of banking. Section 194A(3)(v) of the Act provides that the tax shall not be required to be deducted on income which has been credited or paid by a co-operative society to a member thereof or to any other co-operative society. The claim of the assessee is that the interest payments in question have been paid/credited to its members and therefore following the provisions of Section 194A(3)(v) of the Act, no tax was required to be deducted at source. It is, thus, contended that there was no default in deducting tax at source and thus Section 40(a)(ia) of the Act is not attracted. The aforesaid assertion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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