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TMI Blog2019 (8) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... gher than the face value - Such amortisation would have to be for the remaining period of maturity - This precisely the Tribunal had directed in the order - no contrary instructions of CBDT are brought to notice - The instruction in question having been issued under section 119(2) of the Income Tax Act, 1961, would bind the Revenue - Decided against Revenue. - R/TAX APPEAL NO. 488 of 2019 - - - Dated:- 23-7-2019 - MR J. B. PARDIWALA AND MR A. C. RAO, JJ. For The Appellant (s) :MRS MAUNA M BHATT For The Opponent (s) :MR BS SOPARKAR (6851) ORAL ORDER ( PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 1.00. This Tax Appeal under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... security itself. The respondent-assessee claimed such premium so paid in acquiring the securities as a loss amortised over the entire period of security. 3. The Revenue stoutly opposed the claim. The Assessing Officer as well as CIT(Appeals) rejected the assessee s claim. In particular, the CIT (Appeals) gave detailed reasons. He was of the opinion that the investment was in the nature of capital asset and cannot be treated as stock-intrade. He was also of the opinion that it was not possible to ascertain the loss suffered by the assessee during the year under consideration. On such reasons, he opined that only upon maturity any claim of the assessee can be considered, that too, treating the investment as capital asset. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to be classified under three categories viz. Held to Maturity (HTM), Held for Trading (HFT) and Available for Sale (AFS). Investments classified under HTM category need not be marked to market and are carried at acquisition cost unless these are more than the face value, in which case the premium should be amortised over the period remaining to maturity. In the case of HFT and AFT securities forming stockintrade of the bank, the depreciation/ appreciation is to be aggregated scripwise and only net depreciation, if any, is required to be provided for in the accounts. The latest guidelines of the RBI may be referred to for allowing any such claims. 7. The instructions clearly provide for amortisation of premium paid on ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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