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TMI Blog2016 (6) TMI 1031X X X X Extracts X X X X X X X X Extracts X X X X ..... d so long as the deduction is available to the assessee under section 80P. The question formulated at the time of admission of the appeal, is as follows : “Whether the Income-tax Appellate Tribunal has substantially erred in law in holding that the amortization of premium on investment of ₹ 5,60,614/- is capital expenditure ? The question is already answered by our discussion made above in favour of the assessee. - ITA No. 108 of 2010 - - - Dated:- 21-6-2016 - Girish Chandra Gupta And Asha Arora, JJ. For the Assessee : Mr. R. Bharadwaj, Advocate For the Revenue : Mr. P. K. Bhowmik, Advocate, Mr. Soumitra Mookherjee, Advocate ORDER The Court : The appeal is directed against a judgement and order dated 28 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e material placed before us. The assessee has claimed the deduction for the amortization of the investment u/s. 80P(2)(a)(i). Section 80P(2)(a)(i) reads as under :- (2) The sums referred to in sub-section (1) shall be the following, namely :- (a) in the case of a co-operative society engaged in (i) carrying on the business of banking or providing credit facilities to its members, From the above it is evident that u/s. 80P(2)(a)(i), deduction is allowable in respect of the income of a co-operative society from the business of banking or providing credit facilities to its members. We find that the deduction u/s.80P is already allowed by the A.O. The question before us is with regard to deduction on the write off of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove it is evident that u/s. 80P(2)(a)(i), deduction is allowable in respect of the income of a co-operative society from the business of banking or providing credit facilities to its members. If the income of the assessee is deductible under section 80P, then whether the income has been reduced by the amortization or not becomes only a question of academic interest which does not involve any effect on the Revenue. There has been no loss of revenue. In such a case, insisting upon refusing to allow the amortization would result in insisting upon following a practice, contrary to the circular issued by the Reserve Bank of India which is not desirable. For the aforesaid reasons, we are of the opinion that the amortization may be permit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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