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TMI Blog2015 (6) TMI 553X X X X Extracts X X X X X X X X Extracts X X X X ..... g the impugned order of the Ld CIT(A)-I I Pune dated 5-9-2011. The assessee has taken the following ground in the appeal : "That the learned CIT(A)-I has erred I confirming the disallowance of expenses under the head amortization of premium paid on Government securities debited to P & L a/c Rs. 15,11,333/- by the Assessing Officer That amortization of premium paid on govt. securities be allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see has also pleaded that HTM securities are in the nature of stock-in-trade. In sum and substance, the assessee has amortized the amount of premium over the period of maturity which was disallowed by the Assessing Officer and added while computing the total income of the assessee. 3. The learned CIT(A) confirmed the action of the Assessing Officer for rejecting the claim of amortization of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bank are held under the head "to maturity category" and, therefore, loss arising on the sale of investment is in the nature of capital loss and therefore, the same is not allowable expenditure. The A.O made the addition to the extent of Rs. 14,70,000/-. The Ld CIT(A) confirmed the addition. 14. We have heard the parties. The Ld Counsel placed his heavy reliance on the decision of the Hon'ble Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee Bank for valuing the stock of the Securities. The Hon'ble High Court followed the decision of Hon'ble Supreme Court in the case of United Commercial Bank (Supra). 15. In the case of United Commercial Bank (Supra), even the issue of valuation of the stock in trade of the investment was before the Hon'ble Supreme Court. In the case of the assessee, the issue is regarding allowability of the los ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is allowable. Accordingly, Ground No. 2 is allowed". 5. Moreover, the said issue is also decided in favour of the assessee 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 cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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