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TMI Blog2014 (3) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... rly provide for amortisation of premium paid on acquisition of securities when the same are acquired at the rate higher than the face value - Such amortisation would have to be for the remaining period of maturity - This precisely the Tribunal had directed in the order - no contrary instructions of CBDT are brought to notice - The instruction in question having been issued under section 119(2) of the Income Tax Act, 1961, would bind the Revenue – thus, there was no question of law arises – Decided against Revenue. - Tax Appeal No. 56 of 2013 - - - Dated:- 10-2-2014 - Akil Kureshi And Sonia Gokani,JJ. For the Appellant : Mr. Pranav G. Desai, Advocate For the Respondent : Mr. Tushar P. Hemani, Advocate ORDER (Per : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim. The Assessing Officer as well as CIT(Appeals) rejected the assessee's claim. In particular, the CIT (Appeals) gave detailed reasons. He was of the opinion that the investment was in the nature of capital asset and cannot be treated as stockintrade. He was also of the opinion that it was not possible to ascertain the loss suffered by the assessee during the year under consideration. On such reasons, he opined that only upon maturity any claim of the assessee can be considered, that too, treating the investment as capital asset. 4. The assessee carried the matter in appeal. The Tribunal allowed the assessee's claim following the decision of the Bombay Bench of the Tribunal and also the CBDT Circular dated November 26, 2008. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value, in which case the premium should be amortised over the period remaining to maturity. In the case of HFT and AFT securities forming stockintrade of the bank, the depreciation/ appreciation is to be aggregated scripwise and only net depreciation, if any, is required to be provided for in the accounts. The latest guidelines of the RBI may be referred to for allowing any such claims. 7. The instructions clearly provide for amortisation of premium paid on acquisition of securities when the same are acquired at the rate higher than the face value. Such amortisation would have to be for the remaining period of maturity. This precisely the Tribunal had directed in the impugned order. Though contended, no contrary instructions of CBDT are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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