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TMI Blog2015 (6) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... A.K. Modi ORDER PER SHAILENDRA KUMAR YADAV, J.M: This appeal has been filed by assessee against the order of Commissioner of Income Tax (Appeal)-I, (short CIT(A)-I) Pune for A.Y. 2009-10 on the following grounds. 1. That the learned Commissioner of Income Tax (Appeal)l has erred in confirming the additions made by the A.O who has disallowed amortization of premium paid on Govt. Securities ₹ 23,13,525/-debited to P L A/c. That the Amortization of premium paid on Govt. Securities ₹ 23,13,525/- debited to P L A/c as per RBI guidelines be allowed in full as being the expenses incurred during the course of business of banking. 2. That your appellant prays that he may be allowed to add, to alter, or amend or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition. 14. We have heard the parties. The Ld Counsel placed his heavy reliance on the decision of the Hon ble High Court of Bombay in the case of CIT Vs. Bank of Baroda and in the case of UCO Bank Vs. CIT, 240 ITR 355 (SC). In the case of Bank of Baroda (Supra), the issue before their Lordship was whether the assessee was entitled for deduction on account of depreciation in the value of investments. The method of valuation followed by the assessee Bank was to value investments at cost or market value whichever was lower. The assessee had claimed the depreciation to the tune of ₹ 11,82,35,007/- and the said depreciation was claimed as a deduction which was disallowed by the A.O, but the assessee Bank succeeded before the CIT(A). The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by other co-ordinate Bench in the following cases: i) Decision of Bangalore Bench of the Tribunal in the case of Krishna Grameena Bank Vs. Addl. CIT (ITA No. 146/Bang/2011 and 224/Bang/2011 order dated 15- 6-2012. ii) Decision of Bangalore Bench of the Tribunal in the case of National Co-op. Bank Ltd. Vs. Jt. CIT Range 3 Bangalore (ITA No. 1090/Bang/2010 and 7/Bang/2011, order dated 11-5-2012). We therefore set aside the order of the CIT(A) on this issue and allow the claim of the assessee. 2.1 Facts being similar, so following the same reasoning, we hold that amortization premium paid on Govt. Securities of ₹ 23,13,525/- debited to Profit and Loss Account, as per RBI guidelines has to be allowed being expenses incurred d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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