2016 (5) TMI 970 - AT - Income Tax

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

Summary

Issues involved:
Delay in filing of appeal, Disallowance of broken period interest, Disallowance of amortization of premium expenses, Applicability of High Court judgments.

Delay in filing of appeal:
The appeal was filed with a delay of 237 days, seeking condonation of delay due to pursuing relief before the wrong forum. The Tribunal found the delay not deliberate and admitted the appeal for hearing.

Disallowance of broken period interest:
The Assessing Officer disallowed the claim of broken period interest, citing Supreme Court and High Court decisions. The assessee contended that the issue was covered in their favor by the Bombay High Court and Madras High Court judgments. The Tribunal upheld the claim based on the Bombay High Court decision, directing the Assessing Officer to delete the addition.

Disallowance of amortization of premium expenses:
The Commissioner disallowed the claim of amortization of premium on Govt. Securities, following a Supreme Court judgment. The assessee argued in favor based on the Bombay High Court judgment. The Tribunal allowed the claim, directing the Assessing Officer to delete the addition.

Applicability of High Court judgments:
The Tribunal considered the decisions of the Jurisdictional High Court in favor of the assessee on both broken period interest and amortization of premium expenses. The Tribunal followed the High Court judgments and directed the Assessing Officer to delete the additions. The appeal was partly allowed based on the High Court rulings.

Conclusion:
The Tribunal ruled in favor of the assessee on both issues of broken period interest and amortization of premium expenses, relying on the Bombay High Court judgments. The delay in filing the appeal was condoned, and other grounds not pressed or rejected as per statutory provisions. The Tribunal's decision was based on the applicability of High Court judgments, leading to the partial allowance of the assessee's appeal.