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2016 (5) TMI 970 - ITAT PUNE

2016 (5) TMI 970 - ITAT PUNE - TMI - Broken period interest - Disallowance on account of amortization of premium expenses - Held that:- Both these issues are squarely covered in vaour of the assessee by the decision of Hon'ble Bombay High Court in the case of CIT Vs. HDFC Bank Ltd. [2014 (8) TMI 119 - BOMBAY HIGH COURT ] - Decided against revenue - ITA No. 1725/PN/2014 - Dated:- 18-5-2016 - Shri Vikas Awasthy, JM And Shri Pradip Kumar Kedia, AM For the Assessee : Shri M.K. Kulkarni For the Reven .....

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ctification u/s. 154 before the Assessing Officer. The Assessing Officer rejected the same vide order dated 30-09-2014. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) against the rejection of application u/s. 154. The said appeal of the assessee is still pending before the Commissioner of Income Tax (Appeals) for final adjudication. The assessee had also filed appeal against the assessment order dated 18-12-2012 before the Commissioner of Income Tax (Appeals). The C .....

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in favour of the assessee in proceedings u/s. 154. The assessee was pursuing wrong forum for the relief. We are of the considered opinion that the assessee has been able to show that the delay in filing of appeal is not deliberate or willful. The assessee has been pursuing his case for relief before the wrong forum. The assessee has been able to explain the reason for delay in filing of the appeal. Accordingly, the delay of 237 days in filing of appeal is condoned and the appeal of the assessee .....

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at the assessee had claimed broken period interest paid on purchase of Govt. Securities and amortization of premium on Govt. Securities. The Assessing Officer inter alia disallowed the above claim of the assessee vide order dated 18-12- 2012. The assessee carried the matter in appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) by placing reliance on the decision rendered by the Hon'ble Supreme Court of India in the case of Vijaya Bank Vs. CIT rep .....

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CIT reported as 320 ITR 577 (SC). Aggrieved by the order of Commissioner of Income Tax (Appeals) the assessee has come in second appeal before the Tribunal. 4. Shri M.K. Kulkarni appearing on behalf of the assessee submitted that both the issues on which the addition has been made by the authorities below are squarely covered in favour of the assessee by the decision of Hon'ble Bombay High Court in the case of CIT Vs. HDFC Bank Ltd. reported as 366 ITR 505 (Bom). The ld. Counsel for the ass .....

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contended that on instruction from the assessee he is not pressing ground nos. 3 and 4 raised in the appeal. 5. On the other hand Shri D.N. Parakh representing the Department vehemently supported the findings of authorities below. The ld. DR contended that the Assessing Officer as well as Commissioner of Income Tax (Appeals) had disallowed broken period interest by following the decision of Hon'ble Supreme Court of India in the case of Vijaya Bank Vs. CIT (supra). Similarly, in respect of a .....

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missioner of Income Tax (Appeals) in respect of broken period interest amounting to 66,49,550/- and in ground no. 2 the assessee has assailed the findings of Commissioner of Income Tax (Appeals) in confirming the disallowance on account of amortization of premium expenses 2,66,596/-. We find that both these issues are squarely covered in vaour of the assessee by the decision of Hon'ble Bombay High Court in the case of CIT Vs. HDFC Bank Ltd. (supra). The authorities below have placed reliance .....

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bunal accepted the claim of assessee in respect of broken period interest by following the decision of Hon'ble Bombay High Court in the case of American Express International Banking Corporation Vs. CIT reported as 258 ITR 601 (Bom). The findings of Tribunal are as under: Next issue raised by the revenue in the appeal for AY 2001-02 is whether in the facts and circumstances of the case, the CIT(A) is justified in deleting the disallowance of the claim for payment of broken period interest of .....

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f CIT vs The Bank of Rajasthan Ltd, reported in 316 ITR 391 (Raj). Though, the Hon ble Rajasthan High Court has decided the issue against the assessee after considering the decision of the jurisdictional High Court in the case of American Express International Banking Corpn Ltd vs CIT reported in 258 ITR 601 (Bom); however, we are bound by the decision of the jurisdictional High Court. The CIT(A) has decided the issue by following the decision of the jurisdictional High Court in the case of Amer .....

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by the assessee from the transferees from the broken period under the head business, the department could not have rejected the adjustment of the amounts paid by the assessee to the transferors for the broken period unless the department proves that the method adopted by the assessee did not disclose the true and proper income. However, since the interest income of the appellant s bank has been taxed by the department on accrual basis; interest expenditure relatable to the said income is only t .....

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f the ld CIT(A), qua, this issue. 8. When the Department carried the matter in appeal before the Hon'ble Bombay High Court the following question was framed: (B) Whether the Income-tax Appellate Tribunal was correct in law in holding that the broken period interest is allowable as a deduction, in spite of the Hon'ble Supreme Court s decision in the case of Vijaya Bank Ltd. v. Addl. CIT [1991] 187 ITR 541 (SC) and the Rajasthan High Court s decision in the case of CIT v. Bank of Rajasthan .....

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ional Banking Corporation v. CIT reported in [2002] 258 ITR 601 (Bom). On going through the said judgment, we find that question (B) reproduced above and projected as substantial by Mr. Suresh Kumar is squarely answered by the judgment of this court in the case of American Express International Banking Corporation (supra). In view thereof, we do not find that even question (B) gives rise to any substantial question of law that needs to be answered by this court. Thus, in view of the decision of .....

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a). The issue before the Hon'ble Court was : (C) Whether the Income-tax Appellate Tribunal is right in law in holding that the assessee is entitled for deduction with respect to the diminution in value of the investment and amortization of premium on investment held to maturity on the ground of mandate by the RBI guidelines thereby ignoring the decision of the Supreme Court in the case of Southern Technologies Ltd. v. Joint CIT [2010] 32o ITR 577 (SC)? 11. The Hon'ble High Court decided .....

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