TMI Blog2020 (12) TMI 301X X X X Extracts X X X X X X X X Extracts X X X X ..... made by this Tribunalthat assessee has not provided any evidence before us to counter the said workings given before the ld. CIT(A) is incorrect. This constitutes mistake apparent on record within the meaning of Section 254(2) - we accordingly, deem it fit to modify para 6.3 of our order as under:- 6.3.- We find that in the instant case, the depreciation of investments at the time of shifting from AFS to HTM category had been debited by the assessee as an expenditure in consonance with RBI Circular dated 01/07/2011 referred to supra. The said shifting loss is squarely allowable as deduction. - MA No.153/Mum/2020 (Arising out of ITA No.153/Mum/2020) - - - Dated:- 7-12-2020 - SHRI M.BALAGANESH, AM And SHRI AMARJIT SINGH, JM Assessee by : Shri Nitesh Joshi Revenue by : Ms. Shreekala Pardeshi ORDER PER M. BALAGANESH (A.M): The assessee has preferred Miscellaneous Application as under:- The Applicant files this miscellaneous application before the Tribunal in respect of its order dated 29.01.2020 for rectification of a mistake, which it is respectfully submitted, apparent from the record. 1. It is an undisputed position that the securities a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d No.8 of its appeal bearing ITA No.3673/Mum/2018. The said grounds have been considered by the Tribunal in paragraphs 5 and 6 at pages 7 to 11 of its order dated 29.01.2020. The illustration given by the CIT(A) in its appellate order along with the basis of arriving at the amount of ₹ 3,43,236 is reproduced in paragraphs 6 and 6.1 at pages 8 and 9 of the Tribunal's order. In paragraphs 6.2 and 6.3 at pages 10 and 11 of its order, the Tribunal has inter-alia held that: ......... We find that as per the RBI Circular dated 01.07.2011, shifting loss incurred at the time of shifting of securities from AFS to HTM category should be debited to profit and loss account as a regular expenditure. We find that the Ld. OT(A) while allowing the additional ground of the assessee had categorically agreed that the assessee had incurred valuation loss / shifting loss to have been incurred pursuant to due compliance of RBI Circular dated 01.07.2011. While that be so how the assessee could have violated the very same RBI Circular when it comes to enhancement of ₹ 3,43,236 by way of reversal of shifting loss. Hence, it could be safely concluded that the Ld. CIT(A) had taken a co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 (pages 145 to 148 of the paperbook). The Applicant, therefore, submits that all necessary evidence in support of its contention that the valuation of securities as at the year end and shifting loss is not erroneous was submitted before the Tribunal. 6. The Applicant submits that the working for the amount of ₹ 3,43,236 is extracted by the Tribunal in paragraph 6.1 of its order. As against market value on the date of shifting of ₹ 158,51,31,384, in respect of 7.56% GOI 2014, its market value as on 31.03.2012 i.e., at the year end stood at ₹ 158,54,74,620. The addition of ₹ 3,43,236 represents the increase in market value of the said security between its date of shifting and the year end (i.e., ₹ 158,54,74,620 - ₹ 158,51,31,384). The said working is available in the CIT(A)'s as well as the Tribunal's order and represents reversal of shifting loss. As upheld by the Tribunal hereinabove, this is not permissible as it is contrary to the RBI Circular. This is also clarified by the Tribunal when in its concluding part at para 6.3 it has clarified that the said remarks of the CIT(A) are removed. The only reason given by the Tribunal for d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uly admitted the same and allowed the shifting loss as deduction. 4. Aggrieved by such action, the revenue had preferred appeal before us vide ground No.8. However, the ld. CIT((A) had also sought to make an enhancement to the tune of ₹ 3,43,236/- by partially reversing the shifting loss. 5. We find that the ld. CIT(A) had issued enhancement notice vide letter dated 08/01/2018 to the assessee bank categorically calling for the workings of valuation on securities held in HTM category as on 31/03/2002 in the prescribed format. These papers are enclosed in pages 126 127 of the paper book filed before us at the time of original appeallate proceedings. We find that assessee had responded to the said enhancement notice which is enclosed in pages 128-131 of the paper book filed before us at the time of original appellate proceedings. In the said reply letter dated 10/01/2018 addressed by the assessee to the ld. CIT(A), in paragraph 2, it has been categorically mentioned by the assessee that, without prejudice to the original claim made by the assessee that shifting loss on conversion of securities is squarely allowable as deduction and valuation of securities held as stock ..... X X X X Extracts X X X X X X X X Extracts X X X X
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