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TMI Blog2013 (11) TMI 1584X X X X Extracts X X X X X X X X Extracts X X X X ..... ich remain payable at the end of the year which was paid or payable on demand by customers, so addition was not warranted. Accordingly, same be deleted. Learned Authorized Representative submitted that he is ready to justify its claim as per law for which no opportunity was given by lower authorities. In view of this, we restore this issue to Assessing Officer with a direction to decide the same on facts and law after providing due opportunity of hearing. X X X X Extracts X X X X X X X X Extracts X X X X ..... o has disallowed the amortization premium paid on Govt. Securities of ₹ 15,11,333/-. At the outset of hearing, learned Authorized Representative pointed out that this issue is covered in favour of assessee by the order in his own case for A.Y. 2007-08 in ITA No.306/PN/2012, wherein the Tribunal has decided the issue in favour of the assessee by observing as under: "4. We have heard the parties. We find that the issue before us is clearly covered in favour of the assessee by the decision of ITAT Pune Bench in the case of Latur Urban Co-op. Bank Ltd. in ITA No. 778 and 792/PN/2011, order dated 31-8-2012. The relevant discussion and finding of the Tribunal on the issue is as under. "13. So far as Ground No. 2 is concerned, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue was the method of valuation adopted by the assessee 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 loss on the sale of the Securities. Merely because the Securities are kept under the head till the maturity, the said Security cannot be treated as a purely investment. Law is well settled that the Securities held by the Bank are in the nature of Stock-in-Trade. We may like to quote her ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accordingly. 3. Next issue is with regard to addition made by Assessing Officer who has disallowed the provision for depreciation on Govt. Securities debited to Profit & Loss Account of ₹ 51,06,000/- as per RBI guidelines. This issue is covered by the decision in the case of State of Saurashtra Vs. Dy. CIT, Ahmedabad A Bench by holding as under: "It is an admitted fact that the bank is required to invest and to keep invested certain specified percentage of its demand and time liabilities as prescribed by the RBI from time-to-time, in certain approved securities and, therefore, such investments in securities has to be closely and intimately connected with the business of the assessee. The issue has been concluded in favour of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his amount has not been able to reconciled by the assessee. Accordingly, same was added by Assessing Officer by invoking the provisions of section 41(1) of I.T Act which was confirmed by CIT(A). 4.1 The learned Authorized Representative before us submitted that CIT(A) was not justified in confirming the addition made by Assessing Officer on account of suspense account of ₹ 16,11,421/- . The balance in suspense account represents various sums which remain payable at the end of the year which was paid or payable on demand by customers, so addition was not warranted. Accordingly, same be deleted. Learned Authorized Representative submitted that he is ready to justify its claim as per law for which no opportunity was given by lower autho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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