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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 ..... 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 ₹ 15,11,333/- by the Assessing Officer That amortization of premium paid on govt. securities be allowed as claimed and the addition made may be deleted. 2. The briefly stated the facts which reveal from the record are as under. The assessee society is in the business of banking and also derives income from insurance business. The assessee has made investments in certain government securities as per the norms prescribed by the RBI. The said securit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the Profit Loss A/c on account of loss on sale of securities. The A.O has further observed that the assessee in its submission has stated that securities of the 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 ₹ 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 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 Lord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Bank are in the nature of stock-intrade. Both the authorities below have merely gone on the nomenclature of the head under which the Securities are held. In our considered view, nomenclature cannot be decisive for the assessee Bank. We, therefore, hold that the loss on the sale of the Securities is revenue in nature and same 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 case of National Co-o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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