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TMI Blog2014 (1) TMI 1805X X X X Extracts X X X X X X X X Extracts X X X X ..... t how the classification is made. Thus following the decision in the case of Bank of Rajasthan Ltd. (2010 (12) TMI 894 - ITAT, Mumbai ) and the Latur Urban Co-op. Bank Limited (2015 (3) TMI 920 - ITAT PUNE ) wherein held all the securities held by the Bank form part of the stock-in- trade respective of the classification made as per the RBI guidelines. We, allow the appeal filed by the assessee and delete the addition made by the Assessing Officer. Assessee’s appeal is allowed. - ITA No. 2534/PN/2012 - - - Dated:- 27-1-2014 - SHRI G. S. PANNU, ACCOUNTANT MEMBER, AND SHRI R.S. PADVEKAR, JUDICIAL MEMBER For The Appellant : Shri Pramod Shingte For The Respondent : Shri S.P. Walimbe ORDER PER R.S. PADVEKAR, JM:- T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 49,57,000/- and made the addition to the total income of the assessee. The assessee challenged the addition before the Ld. CIT(A) but without success as the addition was confirmed. Now the assessee is in appeal before us. 3. We have heard the parties. We find that the issue stands squarely covered in favour of the assessee by the decision of the ITAT, Mumbai Bench, Mumbai in the case of ACIT, Central Circle 233, Mumbai Vs. Bank of Rajasthan Ltd., ITA No. 2246 to 2250/MUM/2009 order dated 22-12-2010. In the said decision, the Tribunal has referred to subsequent decision of the Hon'ble Supreme Court in the case of UCO Bank, 240 ITR 355. The operative part of the finding of the Co-operative Bench in the case of Bank of Rajasthan Ltd. (s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital in nature. 19. As stated earlier, the figure of ₹ 65.62 lacs represents the amortization of premium for securities held under HTM category, which has been written off in terms of the RBI circular dated 16/10/2000. Para 14 of the said circular reads as under: 14. Investments classified under Held to Maturity category need not to be marked to market and will be carried at acquisition cost unless it is more than the face value, in which case the premium should be amortized over the period remaining to maturity. Vide RBI circular No.DBOD No.BP.B.C 32/21.04.08/2000-01 dated 16/10/2000, Bank may shift Investment to/from HTM category with approval of Board From/to other category. Further in terms of above referred circular, Pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is as per RBI guidelines and CBDT has also issued directions to allow premium to be amortized remaining with the maturity, therefore, the Assessing Officer is directed to allow the claim of the assessee amounting to ₹ 65,51,826/-. 4. We further find that this issue stands covered in favour of the assessee by the decision of the ITAT, Pune in the case of Latur Urban Co-op. Bank Limited, Latur Vs. Dy. CIT, Circle-3, Nanded, ITA Nos. 778 792/PN/2011 order dated 31-08-2012. In the said case the Tribunal has held that all the securities held by the Bank form part of the stockin- trade respective of the classification made as per the RBI guidelines. The Operative part of the decision of the Tribunal is as under: 14. We have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities held by the Bank are in the nature of Stock-in-Trade. We may like to quote here the decision of the Hon ble High Court of Kerala in the case of CIT Vs. Nedungadi Bank Ltd., 264 ITR 545. In the said case, the Hon ble High Court has held that the securities held by the Bank are in the nature of stock-in-trade. Both the authorities below has 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. So far as the reference by the Assessing Officer to the decision of the Vijaya Bank Ltd. (s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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